The initial public offering (IPO) for the popular social media company Snapchat is getting closer by the day. Wall Street reporters believe Snapchat executives have just officially filed for an IPO with the U.S. Securities and Exchange Commission (SEC). This was apparently done in strict secrecy on November 15th.
Snapchat is expected to be one of the biggest IPOs of next year. With news of this latest SEC filing, many Wall Street experts believe the IPO will come out in March of 2017. They also believe this company could have a value anywhere between $20-$25 billion.
When asked if rumors of this secret SEC filing were true, SnapChat executives declined to comment. New SEC rules allow companies with a revenue over $1 billion to legally file for an IPO with privacy.
SnapChat is a huge hit with younger social media users, with over 60 percent of their member base between the ages of 13-24. Currently, this social media company has over 100 million active users.
Although this is a very popular company, some Wall Street investors are concerned that the only source of income for the company comes from advertising. To combat this worry, SnapChat has been actively promoting itself as a camera company.
Besides their social media platform, SnapChat has also begun to sell their sunglasses this month. These glasses are able to connect to the Internet and to directly send various pictures to SnapChat. About 100 people lined up to check these sunglasses out in a vending machine the company set up near its headquarters in Venice, CA.