Google ad maker buys Snapchat for $1.3B
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Digital ad maker Snap Inc., the parent company of Snapchat Inc., said Thursday it has bought Snapchat, which will have the ability to deliver ads and video on the platform to users in more than 100 countries.
The acquisition is the latest in a series of digital ad buys that have been in the works since 2015 and are expected to deliver a total of more than $1 billion in revenue by 2021, according to the companies’ investor disclosure documents.
Snap said the acquisition is valued at $1,347 per share.
Snap’s chief executive officer said in a statement that the new company will focus on creating “the best experiences” for its users.
“We’re excited to be able to bring Snapchat to more people around the world and provide them with even more personalized, memorable content,” Snap Chief Executive Officer Evan Spiegel said.
Snapchat has seen a surge in popularity over the past year as the app has been used in more traditional ways, such as video chat and social media messaging.
It has also been embraced by tech companies that want to offer an easy way to share their products, such a Google Inc. Snapchat also has a strong relationship with Google, which has long had a strong presence in the market for social media advertising.
Snapchat, based in San Francisco, has more than 10 million users in China, and the company said it plans to invest $50 million to expand its business in China.
Snapchat is one of the few digital ad makers that does not require users to have an account to use it.
The company has said that it will have more than 50 million active users in 2020, and it has raised $50 billion in funding from venture capital firms including Sequoia Capital and Andreessen Horowitz.
The deal is subject to regulatory approvals.
“Snapchat is a leader in mobile ad solutions and we are excited to join forces with Snap to help our clients build a better, more connected experience for our customers,” Spiegel said in the statement.
Snap, a $16 billion company, had revenue of $4.1 billion last year.
Google Inc., which is part of Alphabet Inc., has invested $3 billion in Snap over the last few years.
Digital ad maker Snap Inc., the parent company of Snapchat Inc., said Thursday it has bought Snapchat, which will have…