Snap, the owner of Snapchat, the popular messaging app, will be selling its shares on the US stock market, with an expected value of between $20bn and $25bn.
Snap, the California-based tech firm who created Snapchat, a popular messaging app that allows users to send images and messages that disappear within seconds, is about to be one of the US’s major share listings, with an expected value of between $20bn and $25bn worth of shares.
Snap’s Formal Announcement
Snap has formally announced it will be selling its shares, also revealing that the company had made $404m worth of sales last year, but had a loss of $515m.
They have also announced that the shares being sold do not come with voting rights, which allows Snap to remain in control of the company.
Snap’s Net Worth
The company was launched in 2011 by 28-year-old Bobby Murphy and his co-founder and chief executive, 26-year-old Evan Spiegel, while still at university.
Both Spiegel and Murphy have stakes in Snap worth about $5bn. According to Snap’s listing documents, Snapchat now has around 160 million daily users. It also showed that last year revenues grew by almost 600%.
However, heavy expenses from marketing and research reportedly also dragged them into an overall loss. The company had lost $373m in 2015.
In the filing, Snap said it expected “to incur operat8ing losses in the future, and may never achieve or maintain profitability.”
Analysts predict that the listing would be “the biggest since the launch of Chinese e-commerce giant Alibaba in 2014, and Facebook’s $82bn listing in 2012.
Snapchat- The Next Facebook?
According to CCS Insights analyst Martin Garner, some investors in Snapchat see it possibly becoming the next Facebook.
“If it can repeat the Facebook story to some extent, it’s going to be hugely profitable,” he said.