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A comment on Snapchat Seeks to Raise as Much as $4B in IPO. Parent comment

Re:Snapchat Seeks to Raise as Much as $4B in IPO by mathattack on Wednesday October 26, 2016 @05:29PM (#12800802)
My 2 cents, with no inside information:

1) They're losing a ton of money. They barely have any revenue, and have over 1,000 employees, many of which are high paid engineers. They also have large technical overhead costs. My guess is they want to sock away 3-4 years of cash since they don't want to go back to the market too often.

2) M&A. Perhaps they buy some technology companies. Or Twitter? Or who knows?

3) They may be cashing out certain earlier investors.

When companies IPO, they have to release a significant amount of equity no matter what.

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Re:Snapchat Seeks to Raise as Much as $4B in IPO by jocro on Thursday October 27, 2016 @12:21AM (#12802887)
> They barely have any revenue

At this second? Sure, but they're project for pretty explosive growth (~ $1 billion in 2017):

https://www.emarketer.com/Article/Snapchat-Ad-Revenues-Reach...

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Re:Snapchat Seeks to Raise as Much as $4B in IPO by b2600 on Wednesday October 26, 2016 @11:26PM (#12802705)
Snapchat buy Twitter!? They might need more than 4b$
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Re:Snapchat Seeks to Raise as Much as $4B in IPO by mathattack on Wednesday October 26, 2016 @11:58PM (#12802813)
Not at the rate Twitter is headed downwards. :-) Also, it could be a combo of cash and equity.
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