Mark Zuckerberg and Sheryl Sandberg reportedly approached Evan Spiegel and Snap's board a couple of potential acquisition quickly earlier than it went public (SNAP, FB)
- In 2016, Fb CEO Mark Zuckerberg reached out to Snap CEO Evan Spiegel to debate the potential for an acquisition, based on a Wall Avenue Journal report on Sunday.
- Snapchat infamously turned down a $three billion acquisition supply from Fb in 2013.
- Fb COO Sheryl Sandberg additionally reached out to Snap board members to find out their curiosity in a potential acquisition, based on the report.
- A precise buy worth was not mentioned and no formal supply was made on the time.
- The talks occured proper as Snap was gearing up for an IPO that it anticipated to offer it a $25 billion-plus public valuation. At present, Snap’s market cap is round $6.5 billion.
Snapchat infamously turned down a $three billion supply from Fb in 2013. However based on a Wall Avenue Journal report on Sunday, that wasn’t the one time Fb tried to purchase Snapchat.
In mid-2016, Zuckerberg reached out to Snap CEO Evan Spiegel to debate the potential for shopping for the Santa Monica- primarily based firm, lower than a 12 months earlier than its March 2017 IPO. However these makes an attempt have been dismissed by Spiegel, based on the Journal’s sources.
The Journal additionally reviews Fb COO Sheryl Sandberg reached out to Snap board members to measure their curiosity in a potential acquisition round that point.
A precise buy worth was not mentioned, and based on an individual conversant in the matter from the report, the 28-year-old CEO by no means obtained a proper supply from Fb through the discussions. The individual near Speigel additionally mentioned he has no regrets that the deal did not materialize.
Across the time of the talks in 2016, Snap was anticipating to IPO at a $25 billion-plus valuation, based on the report. At present, nearly two years after its 2017 IPO, its market cap is round $6.5 billion.
Learn extra: FBI brokers reportedly visited ex-Snap staff at house as a part of an investigation into IPO disclosures
The Journal report on Sunday additionally highlighted the latest struggles for Snap, together with a botched app redesign, the departure of key executives, and customers leaving by the tens of millions. Final Friday, Snap’s inventory closed under $5 for the primary time.
Learn the complete Journal report right here.
Spokespeople for Fb and Snap didn’t instantly reply to a request for remark from Enterprise Insider.
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