29 May 2018
Rumours about Apple buying Snapchat’s parent Snap have been circulating for a while now; however, market experts believe that it is unlikely that such a deal will occur.
Purchasing Snap would give Apple access to messaging app Snapchat which is one of the most popular apps. The company has seen excellent revenue growth in 72% in the last quarter alone and saw 8.9 million daily active users. However, with the company has seen an increase in losses.
Snapchat’s recent change in UI has led many people to sign a petition demanding the old Snapchat back. Rumours had suggested that Apple may be looking at a way to become involved in social messaging. Recently Apple’s CEO Tim Cook and Snap CEO Evan Spiegel have announced that they believe AR is the future.
Snap is currently valued at $22 billion, which is not a big deal for Apple which has over $300 billion in its vault. However, the question is whether Apple can develop the technology itself at a lower cost or would rather acquire Snap.
Market experts believe that Apple won’t go ahead with the acquisition as the largest acquisition that the company had ever done was back in 2014 of Beats audio for $3 billion.
Former hedge fund manager Jim Cramer stated that the rumoured acquisition of Snap is unlikely, "That's not going to happen."