Initial Public Offering (IPO) is something Dropbox seems to be adopted very soon and the rumors of involving Goldman Sachs is the major reason behind this speculation. According to the report by Bloomberg, Dropbox is in contact with Goldman Sachs to prepare documents within a year to get into its long term project of IPO. Goldman Sachs is expected to be given the role of lead advisor as told by people who are into this business and wished to remain anonymous.
The file sharing giant is reported to be working in collaboration with Goldman Sachs to prepare the documents so that the whole process can be completed with in a year. Furthermore, the company also communicated JPMorgan Chase to discuss the role in the listing. However, no banks have been official mandated yet, sources revealed.
Interestingly, when representatives of both of the Dropbox and JPMorgan were questioned about the rumors, they declined to comment on it. However, it’s pretty clear that under the hood talks are in process.
According to the experts, the major reason behind this development could be harsh competition. Although Dropbox managed to hit $10 billion marks within a decade several other companies are into the ground as well to provide tough competition. Therefore, it was necessary for Dropbox management to come up with something different and IPO is part of that initiative.
However, going viral doesn’t necessarily mean that Dropbox will oust his competitors out of the race. It may also be a day or a time to be very careful after Blue Apron’s disastrous IPO and Snap’s biggest decline since going public. So it is still quite risky but Dropbox doesn’t seem to have more cards to play.