In March of this year
This social media hot 27 year old CEO Evan - Spiegel (Evan Spiegel) has attracted the most difficult groups of young people's attention. This group of users is the most popular advertisers target audience of.Snap company's flagship product (in addition to its smart glasses Spectacles)
However, after the listing of only a few months, things. It was a sudden turn for the worse the stock fell below the IPO price of $17, the transaction price of about $15, about half of it in the March 3rd peak of $29.44. The stock investors confidence continues to test. First published the first bad times quarter earnings in the company, then when Facebook launched a copy function. Last week, Morgan Stanley is one of the main underwriter of Snap company claims it
With the growing criticism of Snap, many are wondering if and when the company will return to normal. Now, there's a crazy idea that has surfaced: let Snap be sold as a whole.
The company has just been on the market and has been acquired soon, and it has not been heard of. In 2002, eBay, the auction and shopping website, bought it for $1 billion 500 million a few months after the online payment company PayPal appeared on the market. Of course, the takeover was quite different from what Snap is now. PayPal is not in trouble. Instead, eBay wants to strengthen its position in the payment service market and believes PayPal helps to achieve this goal.
In addition, similar cases, as well as Twitter. After two years of listing in 2012, Twitter was seen as one of the most attractive acquisitions. Similar to Snap, the micro-blog site is also facing some difficulties, such as slowing growth in subscriber numbers, declining investor interest, and significant changes in management personnel. At the time, Twitter had a market capitalization of about $17 billion, not far from the current market value of Snap's $17 billion 800 million. Despite the long rumored, no real takeover activity took place. Last summer, many bidders expressed interest in Twitter, including customer relationship management (CRM), software service providers Salesforce, Google, Disney and apple.
Like Snap, Twitter has been trying to keep its share price above $26 on IPO, but now it's down by 1/3. Rumors of the acquisition of Twitter finally subsided, but for Snap, this rumor may have just begun.
Scott Kessler, an analyst at CFRA Research, a market research firm, says Snap Kessler is unlikely to sell. But he gave a completely different reason.
Now, Facebook is actively copying Snap features. The social media giant has copied a range of features, including Instagram, Stories and interactive filters. What's more, it began to grab Snap's advertising business, offer discount services to brands and Sponsored Lenses (sponsored lenses). The number of active users on Instagram Stories has now reached 250 million, compared with 166 million of Snapchat's active users. As Instagram continues to copy, Snap has been forced to deliver differentiated services through product upgrades and development tools.
Even if a company wants to buy Snap, it must convince the company's founders to agree to sell it. Snap sold only non voting shares when it was listed, which gave the founder Spiegel and Bobby Murphy Murphy a lot of control over Bobby. According to the company's S-1 documents, Spiegel controlled 44.3% of the voting rights, and Murphy also controlled 44.3% of the voting rights. Such a voting structure means any major decision made by Snap company, including the sale of the company, is the decision of the two men.
Spiegel and Murphy built the company and made it public, so they might not be willing to sell it. But if investors continue to express their feelings of dissatisfaction, things can change.
Jonny - founder of technology consulting firm Hyperstop (Johnny Won) said the king, the sale of Snap company may be a
Other potential buyers, such as NBC Snap of Kang Custer, also showed a keen interest in the company. It might also want to get Snap's teenage user base. Even Amazon or apple is likely to buy Snap.
But anyway, one thing is certain. If potential buyers find Snap, they'd better get enough money. Analyst Kessler estimates that Snap might charge $20 billion (it now has a market value of about $17 billion).
For all those who are pessimistic about Snap, Kessler says Snap's business is still in place