Snap Inc.—social media marketing tool, Snapchat’s parent company—has begun the process for making an initial public offering.
Snapchat will seek to raise as much as $4 billion in its planned initial public offering, Bloomberg reports. The IPO could value Snapchat at about $25 billion to $35 billion, though a final decision on the size of the IPO isn’t set.
The Wall Street Journal reports:
The four-year-old company, whose Snapchat app lets users send disappearing messages from their smartphones, was eligible to file its IPO paperwork confidentially because it expects to have less than $1 billion in revenue this year. Under the 2012 Jumpstart Our Business Startups Act, companies with annual revenue below $1 billion have the option to file an initial draft of their IPO prospectus with regulators and make adjustments before unveiling it publicly.