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Snapchat reportedly secretly files for share offering

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By Euronews
Snapchat reportedly secretly files for share offering

<p>Snapchat appears to be moving closer to becoming a public company by reportedly secretly filing for an initial public offering (<span class="caps">IPO</span>) of shares.</p> <p>The messaging app – which is very popular but not yet profitable – used a confidential filing method with the Securities and Exchange Commission under which it does not have to reveal full details of its finances. </p> <p>It is a way of testing whether there is enough investor interest. </p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Snapchat Parent Begins the <span class="caps">IPO</span> Process <a href="https://t.co/DIi3IScGwQ">https://t.co/DIi3IScGwQ</a></p>— Dio Favatas (@DioFavatas) <a href="https://twitter.com/DioFavatas/status/798868471459250176">November 16, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>Snapchat could go public as soon as March and be valued at $20 billion to $25 billion (18.7 to 23.3 billion euros), making it the largest <span class="caps">IPO</span> in the US since Chinese e-commerce giant Alibaba went public two years ago. </p> <p><strong>Can Snapchat make money?</strong></p> <p><a href="https://en.wikipedia.org/wiki/Snapchat">Snapchat</a> started in 2012 as a free mobile phone app that allows users to send photos that vanish within seconds. </p> <p>It has more than 100 million active users, about 60 percent of whom are aged 13 to 24, making it an attractive way for advertisers to reach millennials.</p> <p>Awash in venture funding, the company raised $1.81 billion (1.69 billion euros) in May, which valued it at about $20 billion (18.7 billion euros), media reports said at the time.</p> <p>But investors worry that Snapchat’s advertising sales, which began last October, is the company’s only significant revenue source.</p> <p>As well as video and photo messages sent via its app the company also recently <a href="https://www.bloomberg.com/news/articles/2016-11-10/snapchat-starts-selling-spectacles-in-vending-machines-luring-resellers">started selling video-camera sunglasses</a> that connect wirelessly to a smartphone.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Secret filing gets ball rolling on Snapchat <span class="caps">IPO</span>, reports say <a href="https://t.co/NJCxkSa77x">https://t.co/NJCxkSa77x</a></p>— E-Youngie (@Eyoungie_MF) <a href="https://twitter.com/Eyoungie_MF/status/798897089157574657">November 16, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>