Snapchat owner 'worth $24bn' despite making losses

Image copyright Reuters

Snap, owner of the Snapchat, has priced its shares for listing on the US stock market at $17 per share, Reuters reports.

The flotation values the business at $24bn, although Snap has never made a profit.

It will turn the company's founders Evan Spiegel and Bobby Murphy into multi-billionaires.

Snapchat, a messaging app popular with teenagers, allows users to send images and messages that then vanish.

The shares will list on Thursday on the New York Stock Exchange.

The company's losses widened last year, and user growth is slowing down in the face of intense competition from larger rivals such as Facebook.

Despite the challenges in converting "cool" into cash, Snap's valuation is the richest for a US tech flotation since Facebook in 2012.

At the beginning of February Snap's formal announcement to regulators of its plans revealed that the company made sales of $404m last year, but a loss of $515m.

BBC

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