In 2013, Evan Spiegel, the chief founder of Snapchat turned down a lucrative offer from the Facebook founder who was offering $3 billion to buy the app. Although many people called him a coward, Evan knew what he was doing and believed in his then primordial app which its future was not yet determined. It was welcomed by people from across the world, and the revenues were promising for the very first weeks. Reports from trusted sources indicate that the Manager of Snapchat has filled for an initial public offering that is intended to introduce the app to the whole world in 2017.
2017 is the Year People Will Know It Better
For the first three months of 2017, the IPO is targeted to make Snapchat get known to every person in the world. Snapchat Inc. will start selling its shares to willing fans and users. Owing that it is expecting less than $1 billion in 2017, it would be necessary for it to reveal IPO prospectus privately to regulators.
Although the success of the IPO of SnapChat is still questionable due to some constraints, Bloomberg has revealed that the initial public offering values from $25 to $35 billion. This will be more than the $3 billion offer from Facebook Manager that was turned down by Evan. Early this year, a private funding organization that offered $1.8 billion funding said that the real value of Snapchat by then was 18 billion which was clear that people were for this app and its services.
Snapchat Growth Pace is threatening to Other Social Media
Before even the IPO launch, the app is expecting a revenue of $350 million from its advertising campaigns this year. This is a big advancement compared to the 2015 revenue which was hanging at $59 million. Going to 2017, Snapchat expects revenue of $1 billion which shows a tremendous growth of the platform. Twitter, on the other hand, had revenue of $108 million this year which means that it’s far much behind Snapchat revenue. Facebook happens to be the giant with revenue of $3.7 billion, but considering the fact that it launched its IPO long time ago, this amount of revenue is worth the investment. Twitter is trading below its IPO value with a loss of $380 million every year while Facebook is booming with 200% profits of its IPO value.
The Best Place to Invest
Although the Snapchat and Instagram are vying for the same audience Instagram has an upper hand because it has 100 million active users daily which is far much above the number of users of Snapchat. Facebook is like it is on the verge of burying Snapchat by replicating some of its features. The stories feature on Instagram was a duplicated idea from Snapchat app. This was a threatening feature to competitors which could have given Snapchat millions of fans, but it was launched on Instagram which means people will not be overzealous about it after the IPO.