Snapchat will enter the New York Stock Exchange next March with a valuation of 25 billion US dollars. Far from the 3 billion Facebook wanted to pay, just 5 years ago!
When Evan Spiegel refused to sell to Facebook, half of us clapped and the other half thought he was crazy. Well, the recent valuation, a month before Snapchat enters the NYSE, shows that he might have been right.
Over the last 5 years, Snapchat grew to become the leading social app among the younger demographic. Snapchat worked on its ad offering, revamped its app, added many cool updates, filters, stickers and lenses to also become a profitable business. Then the company launched its first hardware, Spectacles and became Snap Inc. Today, weeks before it launches a new CPM advertising model, Snap Inc. is getting ready for IPO.
Lead by Morgan Stanley and Goldman Sachs, Snapchat’s IPO will become the second largest since Facebook’s on May, 18 2012.
Now who still thinks Spiegel made the wrong decision?