Snapchat parent working on IPO valuing firm at $25 billion or more

An image of the Snapchat logo created with Post-it notes is seen in the windows of Havas Worldwide at 200 Hudson Street in lower Manhattan, New York, U.S., May 18, 2016.  REUTERS/Mike SegarAn image of the Snapchat logo created with Post-it notes is seen in the windows of Havas Worldwide at 200 Hudson Street in lower Manhattan, New York, U.S., May 18, 2016. REUTERS/Mike Segar

Photo-sharing app Snapchat’s parent is working on an initial public offering that could value the company at $25 billion or more.

Snap Inc, which operates the app that lets users send videos and messages that disappear in seconds, is looking to sell shares as early as late March. An IPO valued at $25 billion would be significantly higher than Snapchat’s most recent valuation of $17.81 billion, based on a $1.81 billion financing round in May.

It would also represent the largest IPO by a technology company since Chinese e-commerce giant Alibaba Group Holding Ltd  went public in 2014. Snapchat had been talking to investment bankers about an IPO towards the end of this year or early in 2017, technology website The Information reported last month.

Reports on Snap Inc’s IPO come at a time when shares of technology companies such as Square Inc  and Box Inc  that went public over the last two years are trading below their private market valuation. Snapchat’s valuation has grown in the last few years as the company added advertising and sponsored contents to its messaging service.

The company has told investors to expect $1 billion in advertising revenue in 2017, according to sources familiar with the matter.

About the Author

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Svilen Petrov
My name is Svilen Petrov and I’m founder and chief editor at Business News Feeds. Business News Feeds is independent journal, which will daily provide you the most interesting and actual news for companies, employment and management.

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