The social media platform Telegram is on track to make its Wall Street debut soon. According to a report by the Financial Times, the company is potentially eyeing an initial public offering while expecting to be profitable by 2025. The company’s road to profitability has also led to the firm introducing a revenue-sharing model for its creditors.

Telegram Eyes US Listing

According to the Financial Times, the owner of the private messaging app, Telegram, claims that the company has 900 million users and is almost profitable as it gets closer to a possible blockbuster stock market debut. The report also highlights that with the promise of giving the creators who manage their channels a 50% share of marketing funds, the company will launch revenue sharing this month.

Telegram had grown to become one of the world’s most popular social media apps while making “hundreds of millions of dollars” in revenues after introducing advertising and premium subscription services two years ago, Pavel Durov told the Financial Times.

Although the timeline for the IPO is still unclear, it will come at a time when social media firms are minting on subscription and advertisement revenue. FT says that once Telegram achieves profitability and the market sustains to be favorable, the company would likely pursue a US listing.

Telegram’s IPO Plans Coincide with Peer Reddit

Telegram’s IPO comes at a time when its peer Reddit is also in the process of commencing trading in the US. One of the most anticipated stock market debuts of the year, Reddit, is targeting a valuation of up to $6.4 billion in its IPO. Reddit announced recently that the corporation and several important investors intend to sell approximately 22 million shares at a price between $31 and $34 each, hoping to attract considerable interest from investors and market players worldwide. At present the valuation for Telegram is unknown but will be an important factor in understanding where the company is valued in the border market with suitability to completion.

Read Also: Telegram Trading Terminal Unibot Ends Collaboration With a Solana Group

Telegram’s Blockchain Venture to Also Benefit

Telegram had also ventured into the blockchain and Web3 domain with the introduction of TON. Telegram Open Network (TON) is a decentralized worldwide blockchain network that was incorporated to make cryptocurrency accessible to anyone. By integrating Telegram Messenger with the Web3 ecosystem, TON is currently on track to enable 500 million people to take control of their digital identities, assets, and data by 2028.

Telegram’s IPO, if it goes through, will also help its blockchain division excel in the larger realm of the market. This could place it in line with peers, thereby helping to mint a greater deal of revenue from the segment.

The post Telegram to Make Wall Street Debut; Announces Revenue Sharing for Creditors appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am