Reports indicate that Snap Inc., Snapchat’s parent company, has confidentially filed for an initial public offering (IPO).
Rumours about the social giant becoming a publicly traded company have been circulating for months. Snap was last valued at $18 billion USD in its latest funding round.
The Venice, California based social giant is reportedly pursuing one of the biggest technology IPOs of the past few years.
Companies that generate less than $1 billion in annual revenue can file confidentially for an IPO, allowing them to privately test investor interest while keeping financials secret. Twitter is an example of another social media platform that took this route.
Snapchat began its journey in 2012 as a free video and photography app, and has since grown to attract over 100 million active users, 60 percent of which are between the ages of 13 and 24.
Investors reportedly began to worry that advertising revenue from Snapchat was the company’s only significant source of revenue. In September, Snap Inc. began describing itself as a camera company, and launched its $130 USD video camera sunglasses called Spectacles. The glasses connect wirelessly to the user’s smartphone to take and send photos and videos.