Wednesday, May 27, 2015

Snapchat to conquer Wall Street – The World

Le Monde | • Updated | By

A small white ghost could soon haunt the trading rooms. Darling of 12-25 years, the icon symbol of transience messaging application Snapchat should soon land on Wall Street. Evan Spiegel, iconic boss and co-founder of the start-up, said, Tuesday, May 26, consider the IPO (IPO) of the company. “ We have to go public, we plan to do ,” he told the conference in California Code, without specifying a timetable nor the amount he hopes to raise as well.

Two years after being approached by Facebook which proposed $ 3 billion to buy back its application, the young billionaire almost 25 years wants to try his luck in the markets. Founded in 2011, Snapchat meets a huge success with young people, which according to some studies, prefer to Facebook, social network today rather frequented by adults. The application allows you to send pictures, videos and ephemeral texts are doomed to disappear after a few seconds. It now numbers close to 200 million users, 30% of iPhone users in the US recouereraient this message.



A valuation of $ 15 billion

However Snapchat displays a number of users below that Instagram, the photo sharing startup acquired by Facebook in 2012 and with 300 million subscribers. And underperformed Twitter:. The micro blogging network in little blue bird displays 280 million accounts

However, investor enthusiasm for the company based in Los Angeles continues unabated at otherwise. According to latest estimates, the application would not be worth less than $ 15 billion (€ 13.8 billion). It has recently raised $ 200 million from Alibaba, the Chinese e-commerce giant. Some even suggest a valuation of 19 billion euros. “ I am laughed when I heard that Evan Spiegel had declined by Mark Zuckerberg, recently reported the specialized journalist Will Oremus, in an editorial for the website Slate . It is clear that I was wrong.

The amounts raised may seem steep, but are usual in the recent history of Silicon Valley. The private drivers Uber service is such valued $ 41.2 billion, the application of streaming music, Spotify would she, 8 billion dollars. As for Pinterest, the website that can pin favorite trends, it would be $ 11 billion. In February 2014, Facebook bought the instant messaging service WhatsApp for $ 19 billion …

Read also: Start-ups in Silicon Valley are soaring

Multiple formats

If some applications like Spotify or Uber, generate revenue, most do not earn money. A situation which is not alarmed investors. It is quite clear that the popular applications – it is exchanged 700 million ephemeral messages every day on Snapchat – have a very important attractiveness to markets that give them a proportional valuation of their ability to attract new users . “ This is the user account and is monetized ,” said Michael Pachter, an analyst at the broker Wedbush Securities.

Snapchat launched several formats which could eventually , make the application a profitable business. As Discover: launched in January 2015 in partnership with information or entertainment magazines and even television channels such as CNN and MTV, the new service has caused enthusiasm observers

Star of journalism

The idea is simple: every TV channel or partner site has, in a special tab of the application, a small logo. Once selected by the mobile user, it opens a space where is broadcast for twenty-four hours exclusive content. To encourage publishers to incorporate advertising, Snapchat leaders have planned a revenue sharing to their advantage. 100% of what is earned from advertising goes to the content editor if it is he who sold it. Conversely, if Snapchat that placed the chains recover 40% of the sum.

To give legitimacy to its information service, which aims to reinvent the modes of information sharing, Evan Spiegel went knocking on the door of a star of American journalism: Peter Hamby, an expert in politics, which most of the career took place at CNN

The first results of this effort have so far been mixed, but that did not discourage the young boss. Evan Spiegel, passionate about sports cars, continues to forge ahead, in focus with the next step Wall Street. The newly billionaire wants to believe in his star? Or rather his ghost …

Read also: Snapchat still seeks its economic model

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