Headlines: The story of Snapchat

The trend of the last two decades, an internet company; each cheap to setup and manage and therefore earning easy cash. Not for Snapchat. Although its revenues have increased by and six fold to 400 million dollars the costs have staggered along with it, reaching 372.9 million dollars in 2015 and 514.6 million dollar last year.  Meaning it is actually making a loss. Snapchat wants to go public by issuing 200 million shares, at around 14 to 16 dollar raising a staggering 18.5 billion dollars. This is however, not even close to their first estimate just a couple of months ago. Snapchat reportedly then states it will raise between 25 and 35 billion dollar. Nonetheless, will the IPO raise approximately 2 billion dollars for snapchat, which have been designated for investments. Next this, Snapchat doubled the amount of users to 158 million people on a daily basing. Founders Evan Spiegel and Bobby Murphy have nothing the worry about. Even though they are selling their own shares, after the IPO they still hold a majority of 44 percent and additionally the shares sold are without voting right.

Back to top