By now, most people are aware that Snap Inc. (NYSE:$SNAP) has taken quite the beating over the course of the past few months. However, on August 3, after Business Insider’s Alex Heath reported that Google offered to purchase the company for roughly $30 billion in 2016, Snap’s stock started to increase.
After Heath published the report, and as of 2 p.m. ET, Snap shares were up 1.74% and the Venice, Los Angeles-based company was trading at about $12.89.
Based on the report, Google had offered to buy Snap immediately before the company generated money for its Series F funding round. This valued the company at $20 billion. According to one source, the $30 billion offer could still be up for discussion.
Towards the start of 2017, Snap was looking for a valuation of $24 billion in its IPO. However, as one might have heard, the company was quickly disappointed as the stock has been in a constant downward trend since IPO-ing at $17 a share.
Today’s news might be exciting for investors, but it is not the first time rumors of a larger company buying Snap have circulated around the market. For a while, investors believed Facebook (NASDAQ:$FB) and Google (NASDAQ:$GOOGL) were the most likely suitors to buy the company. However, a rocky relationship between Evan Spiegel and Facebook’s Mark Zuckerberg ruled that one out. Conversely, Alphabet’s executive chairman Eric Schmidt and Spiegel are supposedly very close. Therefore, an acquisition by Google might make a tad bit more sense, as the relationship between the two is positive and Google already tried to start a social network of their own.
With all that being said, and if the $30 billion offer is still on the table, it might take a bit to convince Snap’s Spiegel. He is reported to be extremely independent, and against the idea of being bought.
After the jump, Snap’s market value sits at around $15.2 billion. This suggests that Google’s potential offer would be roughly double what the company is worth right now.
Featured Image: twitter
