Not for sale
CEO Evan Spiegel has made it pretty clear that Snapchat is not for sale.
At least, not for now.
Rumors have been swirling that Google reportedly offered Snapchat $30 billion, but in their independent fashion, Spiegel and co-founder Bobby Murphy refused. Though Google claimed that there is no truth behind this, it is likely that they do want a hand in partly owning Snapchat in the future.
Google and Snapchat have already established a solid relationship.
Last year, when Snap Inc. decided to raise money as opposed to being acquired, Google’s investment fund, CapitalG, was there for financial support. In turn, Snapchat has also vowed to spend $2 billion towards Google Cloud in the coming years.
It would make sense
To everyone else, a Google owned Snapchat seems like a logical partnership. Snapchat’s growth has been in decline since Instagram launched their stories, aka their version of Snapchat’s stories.
Google could provide the company with the funding they need to build out their application.
Google’s advanced advertising knowledge would boost Snapchat’s revenue, since they are still relatively new to the ad game. By acquiring Snapchat’s user base, Google could use the social information to better target consumers and appeal to a younger demographic. Together, Snapchat and Google could join forces to create a unique AR device that combines their separate efforts, Snap Spectacles and Google Glass.
With the decline Snapchat is heading for, partnering with Google seems like the best bet. Although to outside investors this may be true, it doesn’t matter. CEO Spiegel and Murphy have full control of the voting rights, which has denied their public backers any voice.
Spiegel is known to be a renegade, initially gaining this reputation after denying Facebook’s $3 billion offer four years ago.
Though it proved effective, since both Spiegel and Murphy are both separately worth that amount today, there is no fact that the same thing will happen again.
Step up or shut up
With both Facebook and Instagram expanding their platforms to offer the same, if not better, experiences, Snapchat will need to up their game and perhaps talk about the possibilities of a co-owned company in the future.