Snapchat Said to Pick Morgan Stanley, Goldman to Lead IPO

Snapchat, the parent company of Snapchat, is preparing for an IPO with Morgan Stanley and Goldman Sachs as lead underwriters. Other banks like JP Morgan and Deutsche Bank are also involved. The company aims to go public by next March, with a revenue target of $350 million this year. Snapchat's business model includes disappearing messages and brand partnerships. The IPO pricing poses challenges due to the unpredictable nature of social media revenue streams.

Which banks were chosen as lead underwriters for Snapchat's IPO?

• Morgan Stanley and Goldman Sachs

• Credit Suisse and Deutsche Bank

• JP Morgan and Deutsche Bank

• Allen and Co. and Barclays

What is a key reason for selecting Morgan Stanley and Goldman Sachs as lead underwriters?

• They have a large number of employees

• They are leaders in underwriting tech IPOs

• They have a strong presence in Europe

• They offered the lowest fees

When is Snapchat aiming to go public?

• Next January

• Next March

• Next June

• Next December

What is a significant revenue stream for Snapchat?

• Merchandise sales

• Selling user data

• Advertising through media deals

• Subscription fees

What challenge might banks face in pricing Snapchat's IPO?

• Finding enough investors

• Setting up the IPO in Europe

• Determining the exact profit stream

• Competing with other social media IPOs