Snap Inc., the company that operates blockbuster messaging app Snapchat, is in the process of filing for an initial public offering, according to The Wall Street Journal.
WSJ initially reported Snap’s valuation could be more than $25 billion but is now saying the IPO could value the company at $20 to $25 billion. The Los Angeles-based photo sharing giant could go public as early as March.
The IPO filing is the latest in a series of moves that hint at Snap’s big growth plans. In 2014, the company (then known as Snapchat) began selling ads in the form of photo filters. In September of this year, Snapchat revealed its ambitions go beyond playful messaging. Snapchat rebranded to Snap Inc. and announced Spectacles, the company’s first foray into hardware.
Earlier this week, Spectacles went on sale with all the fanfare you’d expect from the in-your-face brand. The camera-equipped sunglasses are only available for purchase at pop-up vending machines that relocate around L.A. every 24 hours.
If early interest is any indication, the $130 Spectacles will be a cash cow for Snap. That may factor into the timing of the company’s IPO. Snap is able to file confidentially because it’s expected to generate revenue of less than $1 billion this year, according to WSJ. If it waits much longer, Snap may not be able to fly under the radar.