Snap Is Going Public-Offering Ideas, Not Profits
- Author: Anthony Vega Feb 05, 2017,
Feb 05, 2017, 1:15
Snapchat is going public.
Each day, users under 25 visited the app more than 20 times and spent more than 30 minutes on Snapchat on average, according to a company study conducted from October to December of previous year.
The IPO of Snapchat's parent company Snap Inc. is "one of the most unsettling deals" when it comes to "what transformation aspects" will be further implanted into society, according to IPOfinancial.com president David Menlow, who appeared on CNBC's "Closing Bell" on Friday afternoon. Snap's founders will keep control as the company plans to only sell non-voting shares. Spiegel, 26, is a Stanford drop out who started Snapchat while still at college. At Snap's current private valuation of $18 billion, FORBES estimates that Spiegel and Murphy now each have a net worth of approximately $4 billion. On Thursday CNBC estimated his stake would be worth $5bn, the same as co-founder Bobby Murphy. Snap says the launch of Spectacles has not generated significant revenue for the company, and that it can not "guarantee that investing in new lines of business, new products, and other initiatives will succeed".
Its net loss was $514.6 million last year, and $372.9 million the year before.
Snap had $404.5 million in sales in 2016, up from $58.7 million in 2015. But losses more than wiped out those gains.
"TechCrunch has heard from multiple sources that the company is now weighing a plan to delay an IPO until 2018", reported the tech industry site.
Snapchat is a messaging service that allows people to send videos, photos or other messages using face and voice changing filters. That sort of control is rare outside the media business or the hottest technology companies.
The company's flagship product, Snapchat, is based firmly around the now: capture a moment, share it, and watch it disappear. If our users or partners are not able to access Snapchat through Google Cloud or encounter difficulties in doing so, we may lose users, partners, or advertising revenue.
As expected, Snap Inc.
As a bonus for cloud computing aficionados, a redacted version of the actual contract between Snap and Google was made public as an attachment to the IPO filing, revealing numerous nitty-gritty details of the agreement. Since launch, Snap has introduced a platform for publishers and seen many of its features - in particular Stories - copied by apps, including Instagram.