Snap Inc., also known as the parent company of the popular social media app Snapchat, has filed for an initial public offering according to The Wall Street Journal. The filing reportedly places the value of the company as high as $25 billion, with one individual with knowledge of the company founded by Evan Spiegel saying it could end up being worth as much as $40 billion.
If the high range of these estimates is reached by the time Snap Inc. goes public, Snap's founder and chief executive Spiegel could end up being worth $4 billion in the deal, which is good news for both him and his soon-to-be wife Miranda Kerr (right now, Spiegel's net worth of $2.1 billion already makes him the youngest billionaire in the world). Spiegel and Kerr are already among the richest couples in the world, and a successful, lucrative IPO for Snap Inc. would only cement their status. And not to be cynical, of course, but some have already pointed out that it may be to Spiegel's ultimate financial advantage if the IPO happens before his wedding to Kerr, since California law draws a line between assets acquired before a marriage and during one in the event of a divorce.
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The IPO is reportedly being scheduled for sometime in the first part of 2017, and since the company took in less than a billion dollars this year it was allowed to file privately. But even the most conservative estimates of the company's value would place it in a much better position than the $3 billion offer Spiegel famously turned down when Facebook attempted to buy the company back in 2013. For those interested in the eventual payday brought about by the Snap Inc. IPO, a "wait and see" formation will have to be held until we get closer to the event and public filings are required by law.
