Snapchat CEO expresses interest in IPO

Social network phenomenon plans initial public offering (IPO) but still has no interest in being acquired

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Snapchat CEO Evan Spiegel announced the company's intention to widen its business horizon through IPO’s on Tuesday at Re/code's Code Conference in Rancho Palos Verdes in California. However, no details or timeline for the IPO were provided.

"We believe great businesses have multiple sources of revenue," he said, although he still shows no interest in a merger. 

In 2013 snapchat had a revenue of zero dollars a year, despite this he turned down a $3 billion offer from social media giant Facebook which was interested in acquiring the company. Spiegel also declined Alibaba’s $200 million offer in March as he believes that other for-profit social media networks do not cater to young internet users. 

According to Bloomberg, the mobile video powerhouse has “more than 100 million mostly young users” who “view more than 2 billion videos a day.” Facebook on the other hand has 4 billion global video views per day with 75 percent of them viewed on mobile phone.

Spiegel has been described as an independent innovator who approached social media from a different angle. Attention has also been drawn to his choice of location for his startup, as it is based in Los Angeles rather than the center of the technology world, Silicon Valley. 

The Snapchat CEO has cited years of near-zero interest rates as a source for his business’ success as "people are now making riskier investments." With reference to the much anticipated federal interest rate hike, he stated that the company has adjusted its plans accordingly. 

Snapchat’s value jumped from $10 billion at the end of 2014 to $15 billion in March. 

TRTWorld and agencies