{"id":3844,"date":"2017-03-02T18:24:30","date_gmt":"2017-03-02T18:24:30","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/snaps-high-priced-ipo-rakes-in-cash-for-big-acquisitions.html"},"modified":"2017-03-02T18:24:30","modified_gmt":"2017-03-02T18:24:30","slug":"snaps-high-priced-ipo-rakes-in-cash-for-big-acquisitions","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/snaps-high-priced-ipo-rakes-in-cash-for-big-acquisitions.html","title":{"rendered":"Snap\u2019s high-priced IPO rakes in cash for big acquisitions"},"content":{"rendered":"


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Most of Snap\u2019s top products came from acquisitions, and now it will have the war chest to make more. Yet it didn\u2019t have to blow its momentum to collect this cash. After pricing its IPO at $17, above its original $14 to $16 range, today its\u00a0shares popped over 40 percent to start trading at $24<\/a>. That means it pocketed $3.4 billion while still looking cool and confident on the public markets.<\/p>\n

Sure, the 40 percent pop means it could have priced even higher. A huge windfall of nearly a billion dollars will go to its IPO underwriters \u2014 the big banks like Goldman Sachs that pre-bought Snap\u2019s shares. But having its stock\u2019s price go up on Day One is critical to the company\u2019s brand that hinges on being trendy.<\/p>\n

Now that it\u2019s public, Snap can refocus on advancing its product, which it\u2019s repeatedly done successfully through acquisitions. The most well-known Snapchat feature, its selfie Lenses that let you puke rainbows or look like a puppy, came out of an acquisition.<\/p>\n

\"Snap<\/p>\n

Snap acquired Looksery (left) to power its selfie Lenses (right)<\/p>\n

Here\u2019s a look at the companies Snap has bought and what they turned into:<\/p>\n