One of the world’s most used and renowned cloud file sharing and storage services, Dropbox, is reportedly set to go public and has already filed for an Initial Public Offering (IPO). Bloomberg first broke the news about Dropbox Inc. filing for an IPO with Goldman Sachs and JPMorgan ready to lead the listing. We’re still wondering why this is being done as secretively as it is, since major news outlets have reported that neither Dropbox nor any of the major banks have offered to comment on the situation.
Dropbox, which is being used by approximately 500 million people, was valued at $10 billion late in 2017. The August valuation set the company up for going public. Stories are afloat at the company’s top executives focusing on getting more funding and expanding rapidly after doing so, which would only be possible now from an IPO.
According to the Dropbox website, over 200,000 customers are currently using its premium service. Better known as ‘Dropbox for Business’ which charges users to benefit from cloud sharing and online storage space, unlike the free version which most people use.
Dropbox for Business isn’t the only way the company is making money. It also has two different paid plans for solo users as well. Their basic plan, which is entirely free, gives 2 GB of storage space and access anywhere. If you would like to add on 1 TB of space instead, along with a whole range of other features, then plans from $8.25/month and $16.58/month are available.
Dropbox charges business clients either $12.50/month/user or $20/month/user depending on needed space. This business version of Dropbox also allows for more team collaboration and overall control of the functions.
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When Will the Dropbox IPO Happen and Will It Be as Bad as Snapchat?
The Snapchat IPO of 2017 went horribly. Nobody saw that coming, especially because of the multi-billion dollar valuations that were attributed to it. Snapchat performing below par in their IPO really burst the tech bubble for a lot of companies, which is why so many have been hesitant to declare intentions ahead of time.
Dropbox is the biggest tech company to be heading towards an IPO since Snapchat. Reports are pointing towards this IPO happening any time during the first half of 2018. Uber is another tech giant which investors and financial analysts have their eyes set on for an IPO. The ride sharing service is also expected to head down the same IPO road later on in 2019.
A major reason why investors may be attracted towards pouring money into Dropbox is it shifting its reliance from Amazon data centers to building its own. Dropbox has spent large amounts of money to create data centers of its own and become one of the few cloud storage companies to be completely self-reliant.
This has not only been a very economical move for the company, but has also shown seriousness in its attitude to continue improving its services. The biggest advantage data center migration has had for Dropbox is the increased speed efficiency to end users in file transfers. Which is the core business of Dropbox after all.
What do you think about Dropbox heading towards an IPO? Will it do a lot better than Snapchat did or end up doing worse? Let us know what you think in the comments section below!