Announces Snapchat's parent company IPO next year with a valuation of US$25 billion

Last month, Snapchat was renamed Snap Inc. The purpose of Snapchat is to show that it will become a company that not only depends on software revenue. Today, sources revealed that the soon-to-be-renamed Snapchat plan will begin IPO at the earliest in late March next year. The valuation may reach US$25 billion or more, and Snap Inc’s valuation in the latest round of financing is US$20 billion. If this happens, this will be the largest technology company IPO since Alibaba's IPO in 2014.

The current market value of Square and Box, which were listed last year, is lower than the valuation at the time of financing. Over the past few years, Snap Inc's valuation has risen sharply. The main reasons are divided into two points. First, the company’s messaging service includes features such as advertising and sponsorship content. Next, Snap began secretly deploying hardware products this year to establish a secret. R & D laboratory, and recently released the first hardware Spectacles sunglasses.

Among them, Snap Inc's advertising revenue has become more robust. Snap Inc once told investors that its advertising revenue in 2017 is expected to be US$1 billion. Research firm eMarketer predicts that by 2018, Snapchat will likely have nearly $2 billion in advertising revenue.

In order to continue to increase revenue to prepare for listing. Snapchat will make some adjustments to the original features. For example, it started as a photo-reading device. Currently, in order to increase the size of users, Snapchat will allow users to store some photos and videos for a long period of time. According to Engadget, Snapchat will soon launch targeted ads that allow advertisers to target ads based on information such as content viewed by a user.

For a long time, Snapchat is a fragrant pod, and every major tech giant wants to put it under its umbrella. As early as 2013, Facebook wanted to acquire Snapchat for US$3 billion, which was unfortunately rejected. In November of the same year, Google proposed to acquire Snapchat for US$4 billion, which also failed to return.

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