The search giant Google, who constantly trying and not getting any success in the social media competition. So, the tech giant is planning to buy the established social media platform by offering a deal to the Snapchat. Google secretly offered an informal deal for the acquisition of the Snapchat for $30 billion. The company already tried to take the snap from CEO, Evan Spiegel hands in 2016 and once again throw an unofficial deal on the table just before Snapchat’ IPO.
The company CEO Evan Spiegel has shown no sign for selling the company to Google or anyone else. However, the startup is facing a rough time in terms of growth and revenue as its fight against the Facebook owned Instagram story and WhatsApp status i did not work out for it. In Spite of inventing the story feature, it has the minimum user as compared to the WhatsApp and Instagram feature. The Instagram story just turned 1-year yesterday and has 250 million active users while the Snapchat is used by about 166 million active users.
The Google talks for buying the Snapchat affected the social media company’s shares and helped to rise up by 2.3 percent today. The growth in the stocks of the company is seen after the weeks of downfall due to the hard competition against Instagram and WhatsApp clones of the Snapchat story feature.
The tech giant did not respond to the news and Snapchat declined by saying that Google asking to buy the company and Evan Spiegel cleared that he has no intention to hand over the company to anyone. Both the companies had a history together as Google’s growth-stage investment firm CapitalG invested in the chat app till 2016. Apart from this, the organizations also have some fellowships as the chairman of the Google Eric Schmidt was an advisor to Evan Spiegel. Snapchat also uses the office software of the Google, Google suit and also investing $2 billion in the Google cloud hosting over next five years.
Google is offering the amount which is just double the current market cap of the Snapchat. Coming under one roof and joining the same side will be advantageous for both the companies. As Google can use one of the top social media platforms to make a better social presence among the teens and youth which it flopped with Buzz and Wave. On the other, the Snapchat is in need of some financial help and Google will act as big pocket investor in the startup to improve the things. The VR technology and gadgets like goggles can be integrated with the Snapchat services to come up with the unmatched ideas. Snapchat also will be able to put some money in its R&D department to provide an innovative AR equipped assistance to the Google.
In Spite of the offer that is double the market cap value of the company and interests from the leading tech giant the CEO, Evan Spiegel won't change his mind. The CEO is known for taking a risk and not listening to the others. Both the founders of the company have configured the voting right to give them full authority of the Snapchat's fate and direction. In case other board members think that $30 billion is a better choice right now yet there is nothing in their hand.
James is a writer and editor at MobileAppDaily and he is famous as a tech journalist at MobileAppDaily. He focuses on the mobile app startups & ventures and brings them to the light. He has started his career as a tech writer 6 years ago just after completing his degree in Broadcast and Digital Journalism.