Google Has Got Different Plans And Reportedly Offered Snapchat A Deal Of $30 Billions.
Maintaining a completely different social media record when compared to other social world rulers, Google is yet to taste success on this track. Despite failing multiple times, it is constantly making efforts to bring out the best it can, or else acquire the companies which are already sailing high. This strategy has somehow worked with small startups. But for companies like Snapchat, this is an idea that could be dismissed out of hand.
Refused to accept what Facebook has to offer, Snapchat has already indicated in maintaining its relevance. This time as well, Evan Spiegel has decided to keep the teen sensation idea to himself, with no interest in selling it out to anyone whatsoever. Not even Google. Despite when the startup’s market cap slipped to around $15 billion after reaching as high as $30 billion in May. This was because of the cloning of certain features which earlier were secured by Snap itself.
Google apparently approached Snapchat, offering a whopping sum of $30+ billion. The offer was being made by the search giant during early 2016. Reports even suggested that multiple unofficial meetings were held consecutively, with all of them having a ‘no conclusion’ result. However, it’s possible that Google’s interest was preliminary, and was not uplifted to higher ranks of Snap. It’s understandable how start-ups choose to explore different paths before going public or making a big decision.
After the 2016 talks went nowhere, Google’s growth stage investment CapitalG invested in Snapchat, valuing the company around $20 billion. Which was way less than what Google wanted to offer in return for the acquisition. Snap’s unchallenged throne of stories as of May 2016 is the deduced reason behind this unsigned deal. However, diversion of users and advertisers have taken place ever since the introduction of Instagram stories in August 2016 with nearly similar features as offered by Snapchat, eating away any hope it has for the user base expansion.
Reports suggest that it wasn’t the first time Google has shown interest in Snapchat. After Spiegel turned down Facebook’s offer, Google floated approximately $4 billion in the now distant past. These constant efforts clearly reflect the possibility Google has anticipated in Snap, which is a good thing for a start-up. Well as for now, it solely depends on the notorious CEO Evan Spiegel. However, Snapchat has abolished the existence of any such rumors.