Google extended $30B takeover offer to Snap in 2016, may still be open to deal - report

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in General Discussion
At one point in 2016 Google floated the idea of buying Snap -- the parent company of popular messaging app Snapchat -- for at least $30 billion, and a similar offer may remain open, according to a report.

Snap's Spectacles side-business.
Snap's Spectacles side-business.


The first offer was an "open secret" among Snap's upper echelons and among some other tech industry circles, one of several sources told Business Insider. Talks are said to have come before Snap raised Series F funding in May 2016, which valued the company at $20 billion.

Google is said to have engaged in talks a second time ahead of Snap's initial public offering earlier this year, and in fact left its $30 billion offer open since then. Snap's stock price has been on a gradual decline since the IPO, despite predictions that the company could pose a serious challenge to Twitter and Facebook -- it began at $24.48, but now sits around $13.

A Snap spokesperson insisted that the rumors are "false." It's possible however that any negotiations have been purely informal.

Google and Snap have been close, according to Business Insider sources, with former Google CEO Eric Schmidt for instance being an early advisor to Snap CEO Evan Spiegel. Snap, in turn, is a major Google Cloud customer, and makes use of Google's G-Suite productivity apps.

For Google, a deal might let finally let it secure a popular social network, since efforts like Google+ have largely failed. Snap, meanwhile, could gain access to Google's advertising and bring in more revenue. Spiegel is allegedly very independent however, and has shown no special interest in a takeover.

Snapchat remains extremely popular, sitting at fourth place on the App Store's list of top free apps. In third though is Facebook's Instagram, which has directly copied many Snapchat features.
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Comments

  • Reply 1 of 25
    If you can't create a viable social platform then you might as well buy one.
    MuntztmaybshankviclauyyccornchipAvieshekwatto_cobra
  • Reply 2 of 25
    jimh2jimh2 Posts: 46member
    Snap should take the money and run. There is absolutely nothing to their product.
    MuntztmayStrangeDaysSpamSandwichRayz2016oseamebshanklolliverstarwarsviclauyyc
  • Reply 3 of 25
    $30 Billion for a company with a $15 Billion market cap and plunging ?
    Google must be a real sucker for hard luck cases.  
    bshanklolliverwatto_cobra
  • Reply 4 of 25
    calicali Posts: 3,495member
    $30 Billion for a company with a $15 Billion market cap and plunging ?
    Google must be a real sucker for hard luck cases.  
    Typical Goog. 
    bshankviclauyyccornchipwatto_cobra
  • Reply 5 of 25
    slurpyslurpy Posts: 5,034member
    Holy fuck, $30,000,000,000 for an app that people might move away to something else and stop using in a couple years or less. It does absolutely nothing unique that anyone else can't replicate.  Incredible. 
    StrangeDaysbshanklollivercornchipwatto_cobra
  • Reply 6 of 25
    k2kwk2kw Posts: 1,347member
    $30 Billion for a company with a $15 Billion market cap and plunging ?
    Google must be a real sucker for hard luck cases.  
    Remember Motorola.
    bshankcornchipwatto_cobra
  • Reply 7 of 25
    They should sell while the price is still big or be the next Yahoo! 
    bshankwatto_cobra
  • Reply 8 of 25
    StrangeDaysStrangeDays Posts: 5,595member
    does not compute
    bshankcornchipwatto_cobra
  • Reply 9 of 25
    sergiozsergioz Posts: 211member
    jimh2 said:
    Snap should take the money and run. There is absolutely nothing to their product.
    Just because you can't see it, doesn't mean it's not there. As advertising agency we use their geotargeting feature with very high success rate, with returns of over 600% on a single complain. It works better then Instagram or Facebook at the moment! 
    viclauyycpaisleydisco
  • Reply 10 of 25
    Turo_SanserenaiTuro_Sanserenai Posts: 2unconfirmed, member
    I have been wondering why Apple hasn’t inplemented phone-wide content blocking and this potential merger could be why. Apple may be holding off on allowing phone wide ad-blocking as an act of leverage over Facebook (FB + Instagram) & Snapchats income stream. The second google acquires Snap, I don’t think it will be long before Apple opens up content blocking beyond safari and collapses and strangles these apps at their only source of power & income, Ads. This will create the space for Apple to inocatw and deliver its own social network that can piggy back on its existing infrastructure.
    bshankwatto_cobra
  • Reply 11 of 25
    SpamSandwichSpamSandwich Posts: 29,880member
    $30 Billion for a company with a $15 Billion market cap and plunging ?
    Google must be a real sucker for hard luck cases.  
    Buy low!
    bshankwatto_cobra
  • Reply 12 of 25
    gd it. this better not happen. if it does i'll definitely be switching over to ig's story feature.

    there is a significant lack of understanding of sc in this thread. sc is an incredible social connection tool. if it could be replicated so easily, someone would've done it already. and it's not just a kid thing. i'm a physician who is clinical faculty at a medical school and i use it pretty much every day. and so do most of the people i know.

    an acquisition of Snap Inc. will significantly increase google's creepiness factor, which is saying a lot.

    viclauyyccornchip
  • Reply 13 of 25
    does not compute
    Strange days.
    cornchipStrangeDays
  • Reply 14 of 25
    Rayz2016Rayz2016 Posts: 4,182member
    I'll believe it when I see it. No one with a wallet could be that stupid. 
    viclauyycmacky the mackywatto_cobra
  • Reply 15 of 25
    irelandireland Posts: 17,414member
    Crap
    macky the macky
  • Reply 16 of 25
    gatorguygatorguy Posts: 19,269member
    slurpy said:
    Holy fuck, $30,000,000,000 for an app that people might move away to something else and stop using in a couple years or less. It does absolutely nothing unique that anyone else can't replicate.  Incredible. 
    Plus Snap denies there's any truth to a $30B offer for them anyway. So just another day and another rumor. 
  • Reply 17 of 25
    DCJ0001DCJ0001 Posts: 54member
    gatorguy said:
    slurpy said:
    Holy fuck, $30,000,000,000 for an app that people might move away to something else and stop using in a couple years or less. It does absolutely nothing unique that anyone else can't replicate.  Incredible. 
    Plus Snap denies there's any truth to a $30B offer for them anyway. So just another day and another rumor. 
    That is how acquisitions work. Deny the rumor until the transaction has taken place. 
    lollivercornchipStrangeDays
  • Reply 18 of 25
    cornchipcornchip Posts: 1,098member
    if it could be replicated so easily, someone would've done it already. 

    ???

    an acquisition of Snap Inc. will significantly increase google's creepiness factor, which is saying a lot.


    Agree there.




    watto_cobra
  • Reply 19 of 25
    jumejume Posts: 166member
    jimh2 said:
    Snap should take the money and run. There is absolutely nothing to their product.
    Agree totally. 
  • Reply 20 of 25
    gatorguygatorguy Posts: 19,269member
    DCJ0001 said:
    gatorguy said:
    slurpy said:
    Holy fuck, $30,000,000,000 for an app that people might move away to something else and stop using in a couple years or less. It does absolutely nothing unique that anyone else can't replicate.  Incredible. 
    Plus Snap denies there's any truth to a $30B offer for them anyway. So just another day and another rumor. 
    That is how acquisitions work. Deny the rumor until the transaction has taken place. 
    Oh, so a rumor means it's true! 

    Thanks. 
    edited August 2017
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