Google reportedly floated an offer believed to be in the region of $30bn (£25bn) to buy Snapchat in early 2016, and followed this up with further discussions just ahead of Snap’s IPO earlier this year.
According to Business Insider, citing sources inside and close to the company, Google’s interest in Snap had become somewhat of an “open secret” among the higher-ranking members of the company and within other tech industry circles.
It’s important to note that the discussions are likely to have been of an informal nature and unlikely to have progressed very far, mainly down to Snap CEO Evan Spiegel apparently showing no interest. Despite this, the revelation has seen Snap’s share price climb, which can only be a positive after weeks of falling stock following its IPO.
Though the rise in stock price is a positive, it still hasn’t got back to anywhere close to its IPO price, and investors are likely to not feel best-pleased about Snap turning down Google twice. Having Google’s ownership would put Snap in a very good position and help it get its monetisation avenues in order, especially with the enormous advertising prowess that Google possesses. It’s unlikely to happen anytime soon, however – because Spiegel prides himself on being independent. At the same time, Snap is struggling and money does indeed talk.