Many services Facebook do not broadcast the fact aloud. After the recent controversy surrounding WhatsApp, Snapchat users want to know if Facebook also owns this business. With the growing awareness of privacy, more and more people are starting to discern their personal data and how it is used. So, is Snapchat owned by Facebook or is it a separate entity?
Does Facebook have Snapchat?
Facebook does not own Snapchat. However, it is not for lack of trying. Facebook reportedly made a $ 3 billion cash offer to acquire Snapchat in 2013, as the app began to gain popularity. Snapchat refused and remains an independent entity.
Snapchat is owned by Snap Inc., which was originally Snapchat Inc. before its rebranding in 2016. The company has had its ups and downs, but after a successful year it was valued at $ 50 billion in October. 2020. This is pale compared to the $ 720. billion Facebook valuation as of August 2020. However, Snapchat is stable enough that there is little risk of it being acquired by another entity.
The distribution of the company’s stock adds to Snapchat’s stability. While Snap Inc. is a publicly traded entity, 95% of the voting rights are split between two founders, Evan Spiegel and Bobby Murphy. This means that another entity cannot acquire enough voting power for a hostile takeover (which we have seen many times in tech and games). So, there is no threat that Facebook suddenly tries to gain a majority vote.
Since Snapchat shows no interest in being acquired, Facebook has openly copied the functionality of the app. More brazenly, the Poke app (not to be confused with Poke action, which was previously possible on Facebook) was introduced in 2012 and was essentially a Snapchat clone. However, it only lasted two years before Facebook shut it down.
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