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My 2 cents, with no inside information: 1) They're losing a ton of money. They barely have any revenue, and have over 1,000 employees, many of which are high
by mathattack 10y ago
My 2 cents, with no inside information:
1) They're losing a ton of money. They barely have any revenue, and have over 1,000 employees, many of which are high paid engineers. They also have large technical overhead costs. My guess is they want to sock away 3-4 years of cash since they don't want to go back to the market too often.
2) M&A. Perhaps they buy some technology companies. Or Twitter? Or who knows?
3) They may be cashing out certain earlier investors.
When companies IPO, they have to release a significant amount of equity no matter what.
- b2600 10y agoSnapchat buy Twitter!? They might need more than 4b$
- mathattack 10y agoNot at the rate Twitter is headed downwards. :-) Also, it could be a combo of cash and equity.
- jocro 10y ago> They barely have any revenue At this second? Sure, but they're project for pretty explosive growth (~ $1 billion in 2017): https://www.emarketer.com/Article/Snapchat-Ad-Revenues-Reach-Nearly-1-Billion-Next-Year/1014437?ecid=NL1001 https://www.emarketer.com/Article/Snapchat-Ad-Revenues-Reach...