Telegram Co-Founder Pavel Durov Considers IPO Amid Profitability Hopes
Summary:
Telegram's co-founder, Pavel Durov, discussed in a rare interview the company's financial future, revealing considerations for an initial public offering (IPO). Durov hopes for Telegram, presently ranked fourth-largest messaging service globally, to attain profitability by next year, despite the firm's valuation at over $30bn by potential investors. Current bondholders could receive a 10-20% discount on the IPO, if launched before March 2026. Durov also showed interest in mirroring Reddit's strategy of offering shares to loyal users. Additionally, Telegram unveiled an advertising platform on the TON blockchain this month, intending to further boost funds.
In an uncommon interview, Telegram’s co-founder Pavel Durov shared financial insights and future plans for the messaging service. The first interview since 2017 revealed that the firm is considering going public via an initial public offering (IPO). Born out of Pavel and his brother Nikolai’s efforts in 2013, Telegram is currently solely owned by Pavel Durov, as reported by the Financial Times.
In his conversation with the newspaper on March 11, Durov expressed his optimism about achieving profitability by next year or even this year. He confirmed that the company is exploring methods of monetization and sees an IPO as a potential tool to spread the value of Telegram more widely. Durov's vision for an IPO holds strong despite potential investors ready to value the company at more than $30bn. Insider sources revealed to the newspaper that most likely, a listing on a U.S. exchange would be considered once the company turns profitable.
Telegram previously raised $2 billion via bond issues in 2021. The bondholders could expect a discount of 10-20% on the hypothetical Telegram IPO if it kicks off before March 2026. Durov also expressed an interest in emulating Reddit’s strategy by offering their "loyal" users company shares via an IPO.
On March 11, Reddit disclosed to the United States Securities and Exchange Commission (SEC) that it plans to generate $519 million through an IPO, and its investors would also sell an additional 6.7 million shares, bringing the complete fundraiser to $748 million.
In yet another fundraising initiative this month, Telegram revealed an advertising platform that uses the TON blockchain. Channel owners are entitled to half of the total ad revenue generated from displaying ads on their channels.
As cited by the Financial Times, Telegram, with 900 million users and a workforce of about 50, ranks as the fourth-largest messaging service. Pavel Durov, who was the co-founder of Vkontakte, Russia’s most popular social media, was entangled in a lawsuit filed by the SEC in 2019 to cease Telegram’s $1.7 billion initial coin offering for the introduction of GRAM. In May 2020, Telegram conceded and withdrew their plans for launching the coin, resulting in their departure from the TON Network.
Published At
3/11/2024 9:52:16 PM
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