{"id":7843,"date":"2017-08-03T21:28:00","date_gmt":"2017-08-03T21:28:00","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/google-reportedly-offered-30-billion-to-acquire-snapchat.html"},"modified":"2017-08-03T21:28:00","modified_gmt":"2017-08-03T21:28:00","slug":"google-reportedly-offered-30-billion-to-acquire-snapchat","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/google-reportedly-offered-30-billion-to-acquire-snapchat.html","title":{"rendered":"Google reportedly offered $30 billion to acquire Snapchat"},"content":{"rendered":"


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Nerdy Google has failed at social time and time again, so it considered buying teen sensation Snapchat. The search giant held informal talks with Snap and floated an offer of $30 billion in 2016 before Snap\u2019s last funding round, and just before its IPO this year, according to Business Insider\u2019s Alex Heath<\/a>. That offer was apparently an open secret inside Snap, and was on the table after the IPO, too.<\/p>\n

But Snap\u2019s notoriously independent CEO Evan Spiegel apparently showed no interest in selling out. That\u2019s despite the startup\u2019s market cap slipping to around $15 billion after soaring as high as $30 billion when it IPO\u2019d in May.<\/p>\n

News of Google\u2019s interest helped Snap\u2019s share price climb around 2.3 percent today. The uptick comes after weeks of decline due to lockup expiration finally allowing insiders to sell stock, and strong growth for Facebook\u2019s Instagram Stories and WhatsApp Status clones of Snapchat. Google declined to comment to Business Insider and Snap told it \u201cthese rumors are false.\u201d<\/p>\n

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Snap CEO Evan Spiegel (left) and his advisor and Google Executive Chairman Eric Schmidt (right)<\/p>\n

Google\u2019s growth-stage investment fund CapitalG ended up investing in Snap after the 2016 talks went nowhere, contributing to the round valuing the \u201ccamera company\u201d at $20 billion. The organizations\u00a0have long been buddy-buddy. Google chairman Eric Schmidt was an adviser to Spiegel, Snap runs Google\u2019s office software suite and Snapchat has committed to spending $2 billion on Google Cloud hosting over the next five years.<\/p>\n

At the time of the May 2016 choice to go with raising money instead of being acquired, Snap looked unchallenged in the full-screen Stories social media game. But in August, Instagram\u2019s soon to be wildly successful Stories clone launched, which has diverted growth, mind share and advertisers from Snap ever since.<\/p>\n

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Joining forces could be beneficial to both companies. Google would get a top social property to make up for its Google+, Buzz and Wave flops. It could also reap data about people\u2019s social graphs, where they spend time and what topics they care about, allowing it to improve its ad targeting and measurement.<\/p>\n

Snap would gain a deep-pocketed parent that could provide extra capital to make acquisitions and build out its RD-heavy augmented reality technology. Machine vision and image recognition algorithms from Google Search could unlock information about what\u2019s in everyone\u2019s Snaps. Google\u2019s advertising expertise and connections could boost Snap\u2019s ad revenue.<\/p>\n

Together, they could align their Google Glass and Snap Spectacles hardware efforts to build a powerful but appealing AR device. However, Google\u2019s open, engineering-driven culture could clash with Snap\u2019s secretive, design-driven culture.<\/p>\n

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But Spiegel is the real stumbling block. He and his co-founder Bobby Murphy have configured Snap\u2019s voting rights to give them full control over the direction of the company, denying public backers any say. So even if investors would love to take the $30 billion offer that\u2019s double Snap\u2019s current market cap, they couldn\u2019t compel it to do so. Spiegel famously rebuked Mark Zuckerberg\u2019s offers to buy Snapchat, and is known for following his gut over outside advice.<\/p>\n

As we wrote before the IPO, to bet on Snap is to bet on Spiegel<\/a> \u2014 for better or worse. His sixth sense for product produced ephemeral messaging and Stories, while his eye for acquisitions gave Snap Bitmoji and AR face filters. But with Snap drowning under Facebook\u2019s competition, Spiegel\u2019s renegade style could see the company refuse life preservers even as it sinks.<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/3J84iQqwbw8\/<\/p>","protected":false},"excerpt":{"rendered":"

Nerdy Google has failed at social time and time again, so it considered buying teen sensation Snapchat. The search giant held informal talks with Snap and floated an offer of <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[10,7,14,15,6,12,11],"class_list":["post-7843","post","type-post","status-publish","format-standard","hentry","category-latest-update","tag-computer-news","tag-downloads","tag-microsoft-download-news","tag-networking-updates","tag-technology-update","tag-wordpress-plugin-download","tag-wordpress-theme-download"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t