The popular social media site Snapchat is reportedly getting ready to go on the public market. Leaked information on the company said Snapchat wants to raise $4 billion in their first year on the stock market. If everything runs smoothly, Snapchat will be released as an IPO in 2017.
Valuations for Snapchat vary widely, but all investors expect this stock will be one of the most high profile IPOs to enter the market in a long time. Estimates for Snapchat’s value range from $25 billion to $40 billion. Interestingly, this company couldn’t get a valuation above $20 billion when it raised funds to be an IPO last year.
Snapchat’s sales figures are expected to be between $250-$350 million this year. Next year, Snapchat is planning to reach the astonishing $1 billion mark in revenue.
Although people know this company by the name “Snapchat” today, the company did officially change its name to “Snap, Inc.” in September of this year. It was then that executives from Snapchat told reporters about special sunglasses they were working on that will be able to record video. These videos can then be instantly posted onto Snapchat’s platform.
Snapchat has not announced just yet when they are planning on entering the IPO market. Some investors say Snapchat could be on the stock market as soon as March of 2017.
For those who don’t know, Snapchat was founded in 2011 by students at Stanford University. Users of Snapchat send pictures across the social media platform that automatically self-delete within a short moment. The developers of Snapchat hoped that this self-deleting feature would encourage more honest and quirky conversations.
Some new features to the Snapchat app include a media area where people can read articles by outlets like Vice and ESPN. Snapchat currently has about 150 million users around the world.