All the rumors and speculation can finally be put to rest, as Snap, Inc. (NYSE:$SNAP) just confirmed the price tags for its acquisitions of Zenly and Placed.
According to documents filed with the U.S. Securities and Exchange Commission (SEC) on Friday, Snap – the maker of the disappearing app Snapchat – paid $213 million in cash for France-based Zenly in May and $135 million for Seattle-based Placed in July.
Before today, there were numerous rumors circulating the market regarding how much Snap bought these companies for, and now we know the truth. For instance, TechCrunch announced that Snap had purchased Zenly for roughly $250 million not long after the debut of Snap Maps, but the company hadn’t actually confirmed the acquisitions price tags. For those who don’t know, Zenly created a similar app to Snap Maps, which lets people see where their friends are on a map.
On the other side of the equation, Snap did confirm the acquisition of Placed towards the start of June, but never actually confirmed the rumors that it paid more than $200 million for the company. As it turns out, Snap bought Placed for just over $135 million in cash.
In addition, the Venice, California-based company separately announced that Placed’s employee equity plan includes 550,038 shares. These shares are valued at roughly $6.6 million in stock options based on Snap’s current share price.
Further, Snap spent $62 million on acquiring “a component of a business from a social advertising software company” in June and “all outstanding shares of a company that operates a cloud hosted platform for building content online” in March.
Thanks to the latest SEC filing, the public is now aware that Snap’s grand total of cash spent on acquisitions in 2017 is sitting at $224 million, which is up from a mere $51 million in 2016.
The takeaway? Finding out the actual price tags for these acquisitions should be of interest to anyone thinking about starting online media investing or social media investing.
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