Snapchat announces Plan to Go Public; wants to Grow as Fast as Possible
Evan Spiegel, Snapchat's CEO, communicated about the company's plan to soon have an initial public offering at a technology conference hosted in Ranchos Palos Verdes, California.
Spiegel spoke for an hour with Re/code co-executive editors, Walt Mossberg and Kara Swisher on topics like the company's growth plans and the lack of diversity in technology.
Spiegel stated, "We have to IPO. It's just another dot on the list of things to do". He added that the mandate for him is to grow as fast as humanly possible.
The 24-year-old founder, Spiegel stressed that an IPO for the company is inevitable though he did not elaborate on timing. Further, he asserted, "We believe great businesses have multiple sources of revenue and the company is much more interested in increasing engagement than getting big".
Spiegel also dismissed any notion of selling the company. In 2013, Snapchat had turned down a $3 billion offer from Facebook to acquire the company.
Snapchat is a start-up based in Los Angeles rather than in Silicon Valley, which is considered as the center of the technology world. This photo and video-sharing app is valued at $15 billion and now has nearly 100 million daily active users. Alibaba recently poured $200 million in the company.
The beaming social network is well aware of its credentials. It has been reported that this month, Snapchat will send a 23-page pitch book to advertisers containing data which shows that more than 60% of smartphone users in the US aged between 13 to 34 years are active Snapchatters.
Additionally, Spiegel boasted that Snapchat users are now watching a whopping 2 billion videos a day, which is half the number of users of Facebook that is 10 times as larger than Snapchat.
However, earlier this month Snapchat revised its charges for advertisements, decreasing them to about one-fifth.