Snapchat is officially going public. Reuters' reporting exclusively that the messaging app has confidentially filed for an initial public offering, and it's expected to be big. Correspondent Liana Baker broke the story. She says investors are eager to take a look at the numbers in the prospectus.>> I think revenue growth will be really important.
With startups, profitability isn't something that investors focus on. There's also gonna be a lot of interest into the diversity of Snapchat's revenue. There's concern that they're too advertising-focused.>> Snapchat started in 2012 as a free mobile app that allows users to send photos that disappear. But more recently, it's rebranded itself as Snap Inc, expanding its offering, even debuting its $130 video camera sunglasses earlier this month.
Sources say Snapchat's IPO could happen as soon as March, with a potential valuation that's been pegged as somewhere between 20 and $25 billion, possibly even higher.>> In the past year, there was only about 14 to 15 tech IPOs. I think if you combine all of those, you wouldn't even get to this valuation.
This is gonna be the biggest thing to hit IPO markets in tech in years, we're talking about going back to the Facebook IPO. It's that sort of situation.>> As Wall Street banks jockey for position in hopes of taking the lead on the deal, for investors, the talk is whether Snapchat will open the floodgates for other unicorns like Uber and Airbnb to take the plunge next.