Dropbox is preparing for an initial public offering that could happen as soon as this year, a report from Bloomberg suggests.
Citing “people familiar with the plans,” Bloomberg says the cloud-based file-sharing firm is opening a $600 million credit facility from six banks.
The financial security provides Dropbox with flexibility as it deliberates an IPO. . . . While the company hasn’t set specific timing, potential advisers believe it will be ready to go public by the end of this year. . . .
Dropbox is approaching profitability, with annualized revenue north of $1 billion, according to its chief executive officer, Drew Houston. The company, founded in 2007, was valued above $10 billion by 2014.
Box, the company’s primary competitor, went public in 2015, only to lose more than half of its market value over the next year and change. The company’s stock has still not fully recovered.
The only major IPO in recent months was Snap, which debuted at a $24 billion market valuation, a number that has fluctuated only minimally since.