- Snap has spent at least $352.4 million in cash on acquisitions this year.
- The six-year-old app maker has purchased at least two dozen other companies since 2014 and shows no signs of slowing its spending.
- Snap has historically used acquisitions to build new products like Spectacles or its search functionality.
For a newly-public company facing intense pressure to grow its ad revenue, Snap has no problem spending lots of money on acquisitions.
The six-year-old company has spent a total of $352.4 million in cash on acquisitions from the beginning of 2017 to the end of September, according to a recent filing with the Securities Exchange Commission. For reference, that number is roughly 5 times greater than the cash Snap spent on buying companies within the same period of 2016.
The dramatic increase in spending highlights how important Snap sees acquisitions for its business, even at a time when Facebook appears to be successfully copying some of Snapchat’s core features that initially made the app unique.
Snap reported having $2.3 billion in cash and available securities at the end of last quarter, proving that it has plenty of money to buy up more companies in the future.
Always meeting with startups
Snap’s small corporate development team, led by company veteran Steve Hwang, is constantly taking meetings with startups of all sizes, according to several people who have interacted with the team. As is the case with most potential acquisition talks between companies, the meetings usually never progress past the exploratory stage and into final term discussions.
Snap met with the autonomous drone-maker Skydio earlier this summer, for example, but ultimately decided to not buy or invest in the startup, according to people with knowledge of the talks. A potential acquisition of the Chinese selfie drone-maker Zero Zero Robotics was also abandoned later in the summer Read More Here