Snapchat has been recently in the news for receiving its biggest threat yet, the introduction of ‘Instagram Stories’. Many may have been wondering what would be Snapchat’s comeback move, new filters? new masks? Well today it seems that we have an answer.
According to reports from The Information, Snapchat “is acquiring recommendation app Vurb for around $110 million plus additional team retention payouts”. The deal is structured with the following allocation of 75% stock and 25% cash. Snapchat is more interested in Vurb’s team rather than its product says Business Insider’s source.
Vurb’s core business is providing users with recommendations to movies, events, books, stories and places to visit. It also provides its users with the ability to chat with others and in that way interact with friends and easily plan events. The company had such a good project that it won the prestigious competition of TechCrunch Distrupt NY on 2014. In an article from TechCrunch, they suggest that the reason for this acquisition is that Vurb was running out of money and this was their best choice. There is still more to learn about this deal but both entities haven’t commented since they are bound by legal restrictions.