Revealed Tuesday, Snapchat’s CEO Evan Spiegel announced that the disappearing photo, messaging, and video app has a plan to go public, but did not say when that would happen.
"We need to IPO. We have a plan to do that," he said on stage during a talk at the annual Re/code conference in Rancho Palos Verdes, California. "An IPO is really important," he added, when asked about Snapchat’s IPO potential.
Spiegel also commented on whether or not the current tech bubble will burst. Asked by Re/code’s Kara Swisher and Walt Mossberg, he said “I think that people are making riskier investments and…there will be a correction.” Spiegel notes that the tech bubble burst is “definitely something we factor into our plans.”
The company, which has skyrocketed in popularity over the past few years, is a hot commodity in the tech world. Both Facebook Inc (FB - Free Report) and Google Inc (GOOG - Free Report) , (GOOGL - Free Report) have offered to buy Snapchat in the past (for $3 billion and $4 billion, respectively). Alibaba Group Holding Ltd (BABA - Free Report) , the Chinese e-commerce giant, committed to a $200 million investment in the company earlier this year.
Snapchat closed a $485 million round of funding back in December, and is currently valued at $10 billion. The company also announced plans for a $500 million funding round, which would value the company at $19 billion, making them the third most valuable tech company behind Xiamoi ($46 billion) and Uber ($41 billion).
For more information on Snapchat’s possible IPO, check out Inside Snapchat: The Best IPO for 2015?
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>