After years of speculation, Dropbox reportedly files to go public
Dropbox Inc., a cloud-based file sharing company, secretly filed a U.S. initial public offering (IPO) through the U.S. Securities and Exchange Commission (SEC), reports Bloomberg. The company is currently valued at $10 billion.
The SEC began allowing companies to confidentially file IPOs in July. This effectively allows companies such as Dropbox to avoid publicly disclosing income statements and balance sheets.
Dropbox's competitor, Box, is also a publicly shared company, but Box has struggled to maintain profits since announcing its 2015 IPO. However, Box's shares increased by 3.5% on Thursday around the same time as Dropbox's filing was reported, reports CNBC.
There has been much speculation as to when Dropbox would go public. Dropbox has more than 500 million users and a move like this promises more funds, reputable credibility and liquidity. Challenges can also arise, such as when abiding by new regulations and facing higher pressures from the market. Still, the company has been actively preparing.
Since the SEC's change in IPO filing rules, the company has been adding directors — including the likes of Meg Whitman — to its board, prompting more IPO speculation later in 2017.
Dropbox, a formerly consumer-based platform, has been adding more enterprise-friendly features to its repertoire. The company was successful in its consumer to enterprise transition as employees carried its familiarity up to their businesses.
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