about entrepreneurial companies

Snap Inc.’s Strategies for IPO and Acquisitions

Snap Inc., the firm behind the social media service Snapchat, is courting Wall Street and other Madison Avenue marketers ahead of its initial public offering. The corporation is also in negotiations to acquire several of the largest advertising firms, including Omnicom Group Inc., Interpublic Group of Companies, WPP PLC, and Groupe SA. In its step, they are looking for ad-spending contributions totaling between a hundred and two hundred million dollars to be realized by each firm. This will result in the firms investing more than twice what they had the previous year. This move for the company which is five years into the market now would give it a major boost into the public investor circle if the deal is secured and it could have possibilities of living up to valuations as high as twenty-five billion dollars. From the over a hundred and fifty daily users of the Snapchat application, the company has prospects of them translating into an ad business. The company generated roughly three hundred and sixty-seven million dollars in revenue from ads run between media and content outlets such as CNN, Vice, The Cosmopolitan, and The Wall Street Journal with some ads being specialized and branded using geo filters and sponsored lenses. The company despite being in its fifth year compares to giants in the industry such as Google and Twitter generating sixty-three billion and three billion annually respectively (Suzanne et al., 2017).

Harnessing User Base and Challenging Industry Giants

There is a need to understand that the company are strategists and are harnessing the power of the multimillion daily users who use the application daily as a platform to run their ads and generate revenue. Also, the company has despite it being a newcomer in the field posed a challenge to industry giants.

Entrepreneurial Characteristics of Snap Inc.’s Management

From this article, there is a need to identify that entrepreneurial characteristics are displayed by the managerial board of the company. They do so in managing to challenge industry giants despite them being a newly introduced application into the market. Also, they have come up with a strategic approach to the issue and are geared towards harnessing the power of social media and the multiple users on social media daily to grow their application and brand.

References

Suzanne Vranica, Maureen Farrell and Steven Perlberg. Jan. 25, 2017. Snapchat in in talks for big ad deals ahead of IPO. The Wall Street Journal.