Snapchat paves way for $25bn float
Snap (which recently rebranded from Snapchat) is putting plans in place for a $25bn float next year, which could take place as early as March, according to reports.
The Wall Street Journal has reported that the business, which was founded in 2011, is drawing up the paperwork for an IPO although a spokesperson declined to comment. Tech bloggers, however, have been speculating for some time that a float was on the cards.
Official figures place daily usage of the Snapchat app at 110m a day but analysts believe it to be much higher at 150m; it is estimated that Twitter has around 140m daily users.
In June of this year Snap released a raft of functions to monetise the business, which targets young Millennials, including "Snap Ads Between Stories" and an "Ads API" enabling advertisers to use programmatic interfaces to buy campaigns.
The app, which allows users to share images and short videos, has also gained mileage with its custom filters, which fashion and beauty brands have been at the forefront of adopting. Recent high profile campaigns include River Island's Snap & Share and YSL Beauty's Vernis à Lèvres lens.
Research company eMarketer predicts Snap will generate $367m in advertising revenue this year and about $935m in 2017.
