Snapchat picks Morgan Stanley and Goldman Sachs to lead its IPO
Ka-ching! That's the sound of Snap's (the new corporate name of Snapchat) valuation rising from $70 million in February 2013, to the $25 billion that the company might be worth after completing an Initial Public Offering (IPO) this coming March. Along the way, there was talk of a $4 billion offer from Google that was rejected by the messaging app. If Snap goes public at $25 billion, the venture capitalist firms that invested money at the $70 million level will see their money grow more than 350 times.
Snap has apparently picked two large banks to help it lead its IPO. According to Bloomberg, Morgan Stanley and Goldman Sachs have been selected to run the offering. Other major financial institutions like J.P. Morgan, Deutsche Bank, Allen & Co., Barclays Plc and Credit Suisse Group AG will serve as joint book runners.
The company recently changed its corporate name to Snap. With more than 150 million daily active users, the messaging app hopes to score as much as $350 million in advertising revenue this year. That would be up sharply from the $59 million in ad revenue generated by the app last year.
source: Bloomberg, CNBC