Snapchat- turning down big deals and future planning for earning revenue
Snapchat- the beginning
Snapchat is a photo messenger app which allows its users to send and receive photos, videos, messages
which will disappear in a short while after they are viewed. The application was basically launched in 2011 by
Evan Spiegel, 23 years old, and Bobby Murphy, 25 years old. Bothe ware student of Stanford University. It
quickly gained popularity among the users as a media for easy sharing of sexually explicit content. There was
news about Snapchat leaked everywhere. These Snapchat leaked news led the developers to upgrade some
of the features and transform the app into a great app.
The present situation of the company
So now the app has gained a lot of popularity among its users as well as the Silicon Valley and there are a
lot of offers for taking over the company. The offers include the offer from social media giants Facebok.
According to many experts, the CEO of Snapchat, Evan Spiegel does want to make millions of dollars
from it but he does not want to leave some amount on the table by selling it off to some larger companies.
According to the trends of Silicon Valley, a lot of companies have come up with pretty flying starts but in the
end they couldn’t carry on their run and did not achieve success. Actually coming up of a new tech company
or application is not new thing and sometimes investors are compelled to act upon the decisions with fear
and little concern of the number of zeros involved. Even some Facebook applications like Poke failed to start
off and gain popularity. The Messenger application of Facebook has also struggled to gain the amount of
popularity like its other rivals. In this situation Snap chat has gained much more popularity and is approached
by a lot of overseas investors including one of the three internet giants in China, Tencent. According to the
founders of the app, Mr. Zuckerberg, CEO of Facebook had requested for a meeting with them and travelled
to Venice, California instead of meeting them at his headquarters in Northern California. Snap chat didn’t
properly set the footing or get such popularity in international market then. So, this shows the popularity of
the app and its power to attract the offers.
The future planning of the company according to the developers
According to Mr. Spiegel, he wants to follow the path of earning money and take up the strategies of the
overseas applications like WeChat. WeChat is a Chinese messaging app which earns revenue by allowing its
users to subscribe to popular brands like Starbucks and Nike and receive messages from the subscriptions.
Line, another Japanese messaging app, earns revenue by selling stickers to the users. The users can buy the
stickers and send them to each other. So, it’s a good way to earn revenues.
The investors of Snapchat, Benchmark Capital, planned to invest money on Instagram, but were disappointed
on the app getting sold to Facebook. So they planned to invest money on an application like Snapchat
which offered greater privacy to the users, especially teenagers. As a result, Facebook is reportedly losing its
popularity recently and losing users.