Many of the services that Facebook owns do not broadcast the fact out loud. After the recent controversy over WhatsApp, Snapchat users want to know if Facebook also owns that company. With the growing awareness of privacy, more and more people are beginning to discern their personal data and how it is used. So is Snapchat owned by Facebook or is it a separate entity?
Does Facebook own 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, just as the app was beginning to see a surge in popularity. Snapchat declined and remains an independent entity.
Snapchat is owned by Snap Inc., which was originally Snapchat Inc. prior to its rebrand 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 pales compared to Facebook’s $ 720 billion valuation in August 2020. However, Snapchat is stable enough not to risk being acquired by another entity.
Added to the stability of Snapchat is the distribution of the company’s shares. Although Snap Inc. is a publicly traded entity, 95% of the voting power is distributed between two founders, Evan Spiegel and Bobby Murphy. This means that another entity cannot acquire enough voting power for a hostile takeover (something we’ve seen many times in technology and games). Therefore, there is no threat that Facebook will suddenly try to acquire the majority of the votes.
Since Snapchat shows no interest in being acquired, Facebook has openly copied the app’s features. More blatantly, the Poke app (not to be confused with the Poke action, which was 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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