Three reasons for Snap decided to choose the listing in the PO downturn

Posted On Feb 19 2017 by

[Abstract] U.S. mobile chat social tools Snap plans to market in the first half of next year.

BI Chinese station on October 7th reported

according to foreign media reports, the U.S. mobile chat social tools Snapchat, plans to market in the first half of next year. Snapchat market valuation may reach $25 billion.

recently, Snapchat changed the company’s name, the new name is "Snap", the company is also ready to enter the field of hardware, the introduction of a camera can be glasses.

Snapchat listing will also become the largest American Technology Corp in recent years, the listing of the case. As we all know, the U.S. IPO market has been sluggish for some time, and many technology companies a common practice is to refuse to market.

Snapchat why choose to market, according to a source disclosed, there are three main reasons.

is the first advertising business.

mobile chat affect business model, Snapchat start slowly in mobile advertising, but the company is currently preparing and large brands and enterprises reached advertising cooperation agreement, including some automobile enterprises and FMCG brands.

Snapchat through the listing, corporate image will be upgraded to become a recognized listed company, which is no longer a small mobile Internet enterprise. Listing will help Snapchat get more contracts in the advertising market.

The second reason for

is to compete for talent.

Silicon Valley area is very fierce competition for talent, a variety of technical personnel and design talent was robbed. If the Snapchat market, its stock options will be able to gradually realized, which will help recruit talented people, and the introduction of options, stock and other incentives.

also in the early days of the company, Snapchat also gave employees a lot of stock, along with the company’s development, employees also hope to be able to choose the stock through the listing of cash, improve life.

third reason is to deal with market competition.

Snapchat was born more than five years, relying on the unique burn after reading mode, Snapchat touted among young people, active users of this product have been on the rise.

now, the bigger the size of the Snapchat is facing some of the Internet market giant rivals, such as social networking overlord Facebook and online advertising giant Google (micro-blog).

through the listing, Snapchat will get valuable financing, there will be more weapons and ammunition to challenge the Internet giant.

of course, there are drawbacks listed companies, competitors will be fully informed of the company’s "business machine"

Last Updated on: February 19th, 2017 at 12:59 am, by

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