Dropbox IPO to value business at $7bn

Spotify last valued at $20 billion has a high bar to leap over when it holds its IPO

Spotify last valued at $20 billion has a high bar to leap over when it holds its IPO

Dropbox also announced that Salesforce Ventures has agreed to buy $100 million worth of its stock as part of the IPO process, although that money will go to Dropbox investors rather than the company itself.

While the Class A shares have little voting power, they indicate the company values itself at about $8 billion -a bit less than the $10 billion level it touted in private funding efforts almost four years ago. The latter company is both an investor in Dropbox and an important partner, with the two having announced a collaboration just last week to tighten the integration between their services.

In its regulatory filing with the Securities and Exchange Commission, Dropbox reported 2017 revenue of $1.11 billion, up 31 percent from $844.8 million, a year earlier.

On a nondiluted basis, the company is valued around $6.7 billion, which is a closer comparison to what the company's market capitalization will be when the shares begin trading next week. The reason is that it will prevent the company from entering key stock market indices such as the S&P 500 that are tracked by major Wall Street investors. "We're looking forward to delivering these new integrations so our customers can get the most out of their tools". The company also has Class C shares, which have no voting rights but convert to Class A on a share-by-share basis.

The Class A shares carry one vote each, while its Class B shares carry 10 votes each. The reverse split allows the company to set a higher IPO price without diluting insiders' valuation.

Dropbox, the service once derided by Steve Jobs as merely a feature, but which has achieved stunning storage success while adding ever more features, benefits and strategic partnerships of its own, has done a deal with superlative CRM provider Salesforce. A meeting in NY is scheduled for Monday and in Boston later this week.

Goldman Sachs, JPMorgan Chase, Deutsche Bank and Allen & Co. are leading the offering.

Dropbox shares will trade on the Nasdaq under the ticker symbol DBX. Its content is produced independently of USA TODAY.

Recommended News

  • S.Korean Envoys to Brief China, Japan on N.Korea Visit

    S.Korean Envoys to Brief China, Japan on N.Korea Visit

    Chung flies to Beijing on Monday to meet Chinese President Xi Jinping, while Suh heads to Tokyo to meet Japanese Prime Minister Shinzo Abe.
    Myanmar Is Building Military Bases on Torched Rohingya Villages, Rights Group Says

    Myanmar Is Building Military Bases on Torched Rohingya Villages, Rights Group Says

    Nevertheless, Amnesty's report suggests that rebuilding and development in the Rakhine will be at the expense of refugees. New construction has begun, in the form of security bases and infrastructure, or villages meant for non-Rohingya people.
    Huawei Y9 2018 with four cameras, 4000mAh battery launched

    Huawei Y9 2018 with four cameras, 4000mAh battery launched

    Recall that the basic of the four models of the new series P20, the announcement of which is scheduled for March 27 this year. The Huawei Y9 shares a lot in common with the Mate 10 Lite launched back in October 2017 but features a redesigned package.
  • WWE Fastlane 2018: The Best And Most Surprising Moments From The PPV

    WWE Fastlane 2018: The Best And Most Surprising Moments From The PPV

    SmackDown itself is in dire straits lately, with poor attendance and a meager product that has failed to maximize its talent. Randy Orton wants Bobby Roode's US title while Charlotte puts up the WWE SmackDown Women's Championship against Ruby Riott .
    Japan ministry admits altering documents in scandal dogging Abe

    Japan ministry admits altering documents in scandal dogging Abe

    The risk now for Aso and Abe, experts said, is that the suspected cover-up does more damage than the land sale itself. The operator had named Akie Abe the honorary principal of the school he was planning to build on the government plot.
    Watford manager Gracia can't fathom Arsenal clean sheet

    Watford manager Gracia can't fathom Arsenal clean sheet

    After the match, Arsenal boss Arsene Wenger said: "Two-hundred clean sheets is of course remarkable". "They all just backed off. Within the space of a few second half minutes Arsenal put themselves 2-0 in front and Watford missed a penalty.
  • OR  woman drugged kids so she could tan, work out

    OR woman drugged kids so she could tan, work out

    Neatherlin, who also went by the names January Livsey and January Brooks, also falsely told parents she was a registered nurse. Another parent said her child had blisters in her mouth and on her shoulders after attending Little Giggles.
    Amazon Alexa calling can now be used on tablets

    Amazon Alexa calling can now be used on tablets

    It's a small change, but if you're an active Echo user this is the kind of thing to make your life a little less frustrating. It also won't activate while you're listening to music, streaming an audiobook or making an Alexa call.
    Scientology launches its own TV channel

    Scientology launches its own TV channel

    A network was initially said to be launching on Spectrum, but the cable company denied such plans. Running the app reveals a placeholder announcement that content will officially launch at 8 p.m.
  • 6N: Jones says England failing to adapt to refs

    6N: Jones says England failing to adapt to refs

    Any team that is developing, as we are, you go through these tough periods where the game does not love you. The 45-year-old said : "That's why I believe this defeat was worse than the one sustained at Murrayfield ".
    Famous Designer Hubert de Givenchy Dies: What Was His Net Worth?

    Famous Designer Hubert de Givenchy Dies: What Was His Net Worth?

    The announcement of his death came from the Givenchy fashion house, which is now owned by French luxury goods group LVMH. In 1988, he sold his namesake brand to LVMH which owns Louis Vuitton but remained the lead designer until 1996.
    Michigan State basketball to face Bucknell to open NCAA tournament

    Michigan State basketball to face Bucknell to open NCAA tournament

    All four analysts had MSU and MI in the Elite Eight, with Bilas and Greenberg having both Big Ten teams making the Final Four. The path to the Final Four in San Antonio could include games against No. 2 seed Duke and top-seeded Kansas.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.