Rumored Apple acquisition of Snapchat parent Snap is not going to happen says market expert

Rumored Apple acquisition of Snapchat parent Snap is not going to happen says market expert
The Wall Street rumor mill is always full of possible merger combinations. Most of the time, these rumors really are fake news broadcast by Wall Street pros looking to game the system for millions in trading profits obtained by goosing a stock for a quick pop. This month's Vanity Fair, of all places, contains a rumor stating that Apple could be looking to purchase Snapchat parent Snap.

Purchasing Snap would give Apple access to messaging app Snapchat; despite the recent change to the Snapchat UI that caused many users to sign a petition demanding the old Snapchat back, Apple might see the app as a way to become involved in social messaging. In addition, as we pointed out the other day, both Apple CEO Tim Cook and Snap CEO Evan Spiegel believe that the future is spelled AR.

Snap is currently valued at $22 billion, and even figuring in a premium that Apple might have to pay in any deal, it is certainly an affordable purchase considering that Apple has $300 billion in its vault. But the real question is whether an Apple purchase of Snap gives the iPhone manufacturer something that it can't develop itself for less money.

Most analysts really don't expect Apple to make a play for Snap. After all, the largest acquisition ever done by Apple was its 2014 acquisition of Beats for $3 billion and this would be a purchase about eight times that deal's size. Former hedge fund manager Jim Cramer says about a rumored Apple purchase of Snap, "That's not going to happen."

source: VanityFair via TheStreet

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10 Comments

1. justinha

Posts: 1; Member since: Mar 08, 2018

i wish Samsung buys snapchat if apple buys snapchat i wont use snapchat because i don't like apple

2. kiko007

Posts: 7386; Member since: Feb 17, 2016

Neither of those companies are gonna waste their money on social network. Especially since said network isn't going to turn profitable anytime soon.

3. RebelwithoutaClue

Posts: 5474; Member since: Apr 05, 2013

Don't care if either buys snapchat, as long as they don't change things for the worse, I don't mind who owns it.

9. lyndon420

Posts: 6386; Member since: Jul 11, 2012

I don't use snapchat as it is. If apple buys them I'll have even less of a reason to use it lol.

11. apple-rulz

Posts: 1843; Member since: Dec 27, 2016

Good for you, now pat yourself on the back.

14. Leo_MC

Posts: 6141; Member since: Dec 02, 2011

If you don't like Apple, why would you get (Samsung) devices that are using it's technology?

6. antroid

Posts: 361; Member since: Jan 24, 2018

Personally I don't use Snapchat but I think they don't want to be acquired by any company. First they had a large number of users before the Facebook to acquire them. Then Facebook copied most of there unique features and many users left to Instagram and Facebook while Snapchat saw a decline of users so I don't think they gave up and just looking for a quick buy-out.

8. CEDEOTB

Posts: 320; Member since: Nov 21, 2016

Instagram needs to take them out while they're down. Include streaks and geo-filters and they're finished.

12. Nathan_ingx

Posts: 4766; Member since: Mar 07, 2012

Snapple?

13. AVVA1

Posts: 228; Member since: Aug 01, 2017

Sounds like a tasty dessert

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