Report: Google Offered $30 Billion to Acquire Snap in 2016
Snap, the company that’s behind the very popular image messaging app Snapchat was offered $30 Billion by Google for acquisition back in 2016, according to a report published in Business Insider. This isn’t the first time the company was given an offer for acquisition. Back in 2013, Facebook had offered $3 Billion, which is ten times lesser than what Google offered last year.
Such buyout talks intensified before the Snapchat maker’s IPO in early March, though the report notes that informal talks are quite common during public offerings and fundraising rounds. This $30 billion offer according to one source in the report has supposedly remained “on table since the IPO.”
Snap spokesperson told Business Insider that, as far as formal discussions go, “these rumors are false.” Google declined to comment. Though it must be kept in mind that Alphabet (Google’s parent) did contribute to the $20B Series F financial round Snap raised in May 2016.
This report is sure to give investors a little setback given the fact that Snap stocks haven’t been doing well in the past few weeks. On 2nd August, Snap shares were trading at $12.73 per share, down 2.8%, as of 11:30 a.m. ET Wednesday. That’s 25% lower than the initial public offering price of $17 per share, and more than 50% off its peak closing price of $27.09 per share on March 3. Instagram Stories now has 250 million daily users compared to Snapchat’s 166 million. Instagram’s usage per day beats the “more than 30 minutes per day” of usage Snapchat claims on average now, as well as the over 30 minutes per day for under 25s and 20 minutes per day for over 25s Snap cited in its IPO filing.
CEO Evan Spiegel has been known to be highly independent and has never shown any interest in an acquisition.
Source: Business Insider