The secret is out. Snapchat announced last month that they are officially filing for their $25 billion IPO. Now, to sell themselves on Wall Street, they are going to investors to want what they have, so here goes Snapchat trying to convince everyone that it can take the world by storm, just like its older internet cousin, Facebook, The Wall Street Journal reports.
The company claims that it is worth $20-$25 billion off the bat, with a quick ROI coming for those who buy their initial public offerings.
Snap Inc. is hitting the road to convince investors of just how great they really are. The company’s executives are hyping up the company’s daily active user base — more than 150 million people per day. Impressive, but not as impressive as their claimed counterpart, as Facebook currently has roughly 1.18 billion daily users.
This comparison to Facebook in particular is an interesting one, as the two differ on many levels. “Facebook tested self-destructing messages; Snapchat started letting users save some. Snapchat shuts down the ability to purchase puking rainbow filters; Facebook purchases a comapny that adds filters to Facebook photos. Snapchat signs a streaming content deal with NBC Universal; Facebook seeks out original content deals with basically everyone else. Facebook doubled down on its attempts to take Snapchat down a rung or two in the back half of the year, launching new Instagram features and new Facebook-based apps designed directly to target the ghostly competition.” Says Kate Cox of The Consumerist.
Basically, all social media networks and services are molding together, trying to offer similar features across the board (i.e. Instagram adding its “story” feature, mocking what Snapchat became famous for).
With this being said, it’s exactly what Snapchat is preaching. This major company, Facebook, wants to be like them. How are you not going to invest in something like that?
As the WSJ notes, Snapchat’s founder turned down a $3 billion cash offer from Facebook for his business in 2013. I think it’s safe to say that was the right move for the young man.