What I want to know, is who Photoshopped Justin Bieber?
Great Job!
Yeah, this is just another day, another rumor. Snap should be so lucky to have Google interested.
Google should buy / start up EV bike share company. Plenty of urban areas worldwide to operate and build out a unique experience well suited to Google's skill set.
First off I think is funny as hell for some of you to be questioning Facebook. They are doing pretty well thank you. Second I am not sure I agree with it or not but I do admire a company that believes in their own product and where money isn't the sole objective. Kudos to them for that. I know money makes the world go around but there is something to be said for believing in something for more than just money.
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.
Did they deny it, or would not confirm it. Not confirming either way is one thing, outright denying it, and it really happening especially if conversations are going on would have legal issues. This is why all companies make statements the can not comment on matter which are rumors and the company itself has no disclosed.
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.
Did they deny it, or would not confirm it. Not confirming either way is one thing, outright denying it, and it really happening especially if conversations are going on would have legal issues. This is why all companies make statements the can not comment on matter which are rumors and the company itself has no disclosed.
I believe they denied it, calling the rumors false. Add in the very recent news that Google is doing their own Snap imitation (which will likely fall flat like their other social network efforts but whatever) and It's even more unlikely Google has a $30B offer on the table.
First off I think is funny as hell for some of you to be questioning Facebook. They are doing pretty well thank you. Second I am not sure I agree with it or not but I do admire a company that believes in their own product and where money isn't the sole objective. Kudos to them for that. I know money makes the world go around but there is something to be said for believing in something for more than just money.
Every company has to run on money from somewhere or it closes down. What Evan Spiegel has done is convince shareholders to part with billions and the company is just burning through that cash and he goes off marrying a supermodel after paying himself and staff billions:
Over 80% of their costs go to Google for hosting so it makes some sense as to why Google would buy them as it would reduce their costs but even if they cut hosting costs to zero, Snapchat's R&D, sales, and admin exceed their revenue. Revenue can be used as a way to value companies as it can mean a payoff in future if they can scale up and keep costs down but it doesn't look like that's possible with Snapchat.
Ad companies like Facebook and Google value people over product, if millions of people visited an empty web page, they'd bid for it. Snapchat has 166m daily active users. Facebook has 1.3b. WhatsApp had ~500m when Facebook bought them for $22b. The companies eventually look for ways to help their ad service. Facebook did it with their timeline feature, they managed to introduce more ads (as many as 10 per page) and increased revenue per user:
They aim to scale revenue up to $770m this year. That's a decent amount of revenue but if it's not going to make a profit then $30b is a lot to invest in it. That's about 1/6 of all Google's assets. This is exactly the kind of thing Snapchat's investors would love - a deal like WhatsApp where some wealthy benefactor comes along and just buys out their profitless product. That's all VCs do now is try to sell snake oil to billionaires, the same snake oil that the startups sold them in the first place:
Obviously the wild promises pan out sometimes and that's how they get away with these crazy valuations for empty products but there's a limit to how far people are willing to let it go. Facebook already offered them $3b years ago when they made no revenue so the company should get a few billion whatever happens. If they keep aiming for a crazy valuation before they can show they can turn a profit, they'll keep burning through cash until they have to accept a lower offer.
Comments
Great Job!
Yeah, this is just another day, another rumor.
Snap should be so lucky to have Google interested.
Google should buy / start up EV bike share company. Plenty of urban areas worldwide to operate and build out a unique experience well suited to Google's skill set.
http://pagesix.com/2017/07/19/evan-spiegel-and-miranda-kerr-set-sail-as-snapchat-sinks/
The company has made net losses since inception to the tune of $1.2b:
http://www.marketwatch.com/story/why-snapchat-is-losing-so-much-money-2017-02-08
Over 80% of their costs go to Google for hosting so it makes some sense as to why Google would buy them as it would reduce their costs but even if they cut hosting costs to zero, Snapchat's R&D, sales, and admin exceed their revenue. Revenue can be used as a way to value companies as it can mean a payoff in future if they can scale up and keep costs down but it doesn't look like that's possible with Snapchat.
Ad companies like Facebook and Google value people over product, if millions of people visited an empty web page, they'd bid for it. Snapchat has 166m daily active users. Facebook has 1.3b. WhatsApp had ~500m when Facebook bought them for $22b. The companies eventually look for ways to help their ad service. Facebook did it with their timeline feature, they managed to introduce more ads (as many as 10 per page) and increased revenue per user:
http://www.businessinsider.com/snapchat-arpu-versus-facebook-arpu-charts-2017-5
This is harder to do with Snapchat as it's image/movie based but they similarly come up with new features to let them do this:
https://www.theverge.com/2016/6/14/11930386/snapchat-ads-api-stories
http://www.businessinsider.com/data-shows-nearly-half-of-snapchats-revenue-comes-from-discover-ads-2017-1
They aim to scale revenue up to $770m this year. That's a decent amount of revenue but if it's not going to make a profit then $30b is a lot to invest in it. That's about 1/6 of all Google's assets. This is exactly the kind of thing Snapchat's investors would love - a deal like WhatsApp where some wealthy benefactor comes along and just buys out their profitless product. That's all VCs do now is try to sell snake oil to billionaires, the same snake oil that the startups sold them in the first place:
http://fortune.com/silicon-valley-startups-fraud-venture-capital/
Obviously the wild promises pan out sometimes and that's how they get away with these crazy valuations for empty products but there's a limit to how far people are willing to let it go. Facebook already offered them $3b years ago when they made no revenue so the company should get a few billion whatever happens. If they keep aiming for a crazy valuation before they can show they can turn a profit, they'll keep burning through cash until they have to accept a lower offer.