Snap values itself at nearly $24B with its IPO pricing
Snapchat is one of the most famous and the most widely used short story (a mix of video and images) sharing app. Snapchat had just given the full and final price for its IPO. Snapchat just setupit’s company’s valuation at around $24 billion having price of about $17 per share, this is according to the report of the Wall Street Journal. This is the first technology IPO of the year 2017 so, thisall looks like Wall Street havea lot of appetite for Snapchat which is becoming more and more famous with each passing day. At the same time the dependence and rising burn on Google & Amazon for the services Snapchat is using do not appears to be of any issue to put down the demand of the first technology IPO of this year — and at the same time being one of the largest. Snap according to reports is going to be raising around $3.4 billion in its IPO.
Snapchat filed to go public early in February of this year and at the same time Snapchat showed a rapidly growing advertising business which went from around $59 million in revenue in the mid of 2015 to about $400 million in mid 2016. With this success story Snapchat also revealed that it crossed more than around 150 million active usersdailyand the costs of revenue had also jumped to around $450 million.
When it comes to the past few weeks, SnapchatCEO Evan Spiegel and other executives met with different investors in different cities in order to pitch the company stock. But, still Snapchat’s IPO is an unusual one.
When we talk about the shares that it must be noted that Snapchat is selling the(non-voting) shares in this particular IPO, i.e. the investors who are going to buy these shares are not going to have any authority to say anything related to the directions the company must follow. So, in short it is basically a kind of bet that company is going to continue to grow &the company is going to continue to act on the strategy laid out by CEO Spiegel and the team Snapchat and new share holders are going to have basically almost no impact on the decision. In short, Spiegel is still going to be in complete control of Snap Chat’s destiny.