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Summary
- Investors have been speculating about Hootsuite’s initial public offering (IPO) since January this year.
- The traction came primarily after it acquired leading digital customer engagement platform Sparkcentral in January.
- Established in 2008, Hootsuite has made its name internationally as a social media management company.
Since the beginning of this year, investors have been speculating about Hootsuite’s plans to go public. The traction came primarily after it acquired leading digital customer engagement platform Sparkcentral in January.
Established in 2008, Hootsuite has made its name internationally as a social media management company that integrates popular social networking platforms like Facebook, Twitter, YouTube and Instagram.
Its acquisition of Sparkcentral was considered to be vital as the firm provides software-as-a-service (SaaS) solutions to major companies like Air Canada, JetBlue, Netflix, Uber, Dropbox, etc.
Six months after the deal, investor interest in Hootsuite’s initial public offering (IPO) plans seems to have rekindled.
Is Hootsuite planning to go public?
In January this year, Hootsuite management had reportedly said that the company aims to achieve consistent growth before going public.
As the pandemic continued and people spent an unprecedented amount of time online, the social media engagement platform is likely to have witnessed strong growth in the first half of 2021.
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Started by entrepreneur Ryan Holmes and a handful employees, Hootsuite's growth has been significant in the last nearly 13 years.
The Vancouver-based company claims to have garnered over 18 million customers. By acquiring Sparkcentral, Hootsuite is likely to accelerate its online presence and sales further.
The COVID-19 pandemic has reshaped the digital industry and its demand in the last one year, and innovative software solutions seem to have the potential to boost revenues for tech companies like Hootsuite.
According to a Grand View Research report, the market size of global digital marketing software was worth US$ 49.4 billion in 2020. Till 2028, this industry is expected to register a compound annual growth rate (CAGR) of 18.2 per cent.
Needless to say, the consumption of digital media is expected to keep growing as time goes by. To capitalize on this rising demand, Hootsuite could go public to raise gross proceeds and expand further.
So far, however, there has been no announcement from the company about any plans for a public debut, so it seems like investors may have to wait for a while to get their hands on some Hootsuite shares.
