NBCUniversal Announces Huge $500 Million Investment in Snap IPO

Pablo Tucker
March 4, 2017

Loss-making Snap's Snapchat app - best known for disappearing messages and use of image filters to add special effects - has proved popular with teenagers especially, with over 158 million users worldwide but user growth has been slowing. Lynton bought 293,340 shares of Snap's Series C preferred stock in January 2014, paying about $3.41 a share for a total price of almost $1 million.

Evan Spiegel is already a very rich man. The share price rocketed another 44 per cent higher when trading began Thursday. Thursday also marked Snap Inc.'s first day as a publicly traded company.

Over the course of the day, Snap sold 200 million shares of stock, raking in $3.4 billion in the process.

The social media app now faces the huge task of squeezing profits from its users, which are reportedly at nearly 160million daily.

"We expect that 10% to 20% of the initial offering will be shorted in the first week of trading, which roughly translates into $500 million to $1 billion of short interest right from the start", Dusaniwsky said.

To do so, they would have to reach out to venture capital fund partners, asking for permission to invest in targeted small companies trying to turn technology innovations into hit products. It's the largest deal by a USA -based company since Facebook's 2012 public debut.

Snap, Inc. Is now valued at $33 billion dollars, which puts it on par with Target and the Marriott Hotel chain.

"Unless Snapchat's stock price falls apart in coming months, the ability to get its IPO off the ground successfully should embolden those other young, richly valued tech companies with high revenue growth but finances that need some work", Bloomberg columnist Shira Ovide wrote.

Before the trading debut, Jordan Hiscott, chief trader at Ayondo Markets, said: "What sets it apart from other messaging apps like WhatsApp for me is the innovative features built into the app's interface, such as the lenses function".

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