Snap Inc. is an American
camera
A camera is an Optics, optical instrument that can capture an image. Most cameras can capture 2D images, with some more advanced models being able to capture 3D images. At a basic level, most cameras consist of sealed boxes (the camera body), ...
and
social media
Social media are interactive media technologies that facilitate the creation and sharing of information, ideas, interests, and other forms of expression through virtual communities and networks. While challenges to the definition of ''social medi ...
company, founded on September 16, 2011, by
Evan Spiegel
Evan Thomas Spiegel (born June 4, 1990) is an American businessman, co-founder and CEO of Snap Inc. Spiegel was the youngest billionaire in the world in 2015.
Early life and education
Spiegel was born in Los Angeles, California, to lawyers J ...
,
Bobby Murphy, and Reggie Brown based in
Santa Monica, California
Santa Monica (; Spanish language, Spanish: ''Santa Mónica'') is a city in Los Angeles County, California, Los Angeles County, situated along Santa Monica Bay on California's South Coast (California), South Coast. Santa Monica's 2020 United Sta ...
. The company developed and maintains technological products and services, namely
Snapchat
Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before the ...
,
Spectacles
Glasses, also known as eyeglasses or spectacles, are vision eyewear, with lenses (clear or tinted) mounted in a frame that holds them in front of a person's eyes, typically utilizing a bridge over the nose and hinged arms (known as temples o ...
, and
Bitmoji
Bitstrips was a media and technology company based in Toronto, Canada, and founded in 2007 by Jacob Blackstock, David Kennedy, Shahan Panth, Dorian Baldwin, and Jesse Brown. The company's web application, Bitstrips.com, allowed users to create co ...
. The company was named Snapchat Inc. at its inception, but it was rebranded Snap Inc. on September 24, 2016, in order to include the Spectacles product under the company name.
The founders own a combined 95% of voting shares (Spiegel with 48% and Murphy with 47%), which are undiluted and transferable to the other when one retires or dies.
History
The company was founded on September 16, 2011, by
Evan Spiegel
Evan Thomas Spiegel (born June 4, 1990) is an American businessman, co-founder and CEO of Snap Inc. Spiegel was the youngest billionaire in the world in 2015.
Early life and education
Spiegel was born in Los Angeles, California, to lawyers J ...
and
Bobby Murphy upon the relaunch of the photo sharing app Picaboo as
Snapchat
Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before the ...
. On December 31, 2013,
the application was hacked and 4.6 million usernames and phone numbers were leaked to the Internet. Also in December 2013,
Emily White, who had been a high-profile executive with
Facebook
Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin M ...
,
Instagram
Instagram is a photo and video sharing social networking service owned by American company Meta Platforms. The app allows users to upload media that can be edited with filters and organized by hashtags and geographical tagging. Posts can ...
, and
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
, was hired as
COO
COO or coo may refer to:
Business
* Certificate of origin, used in international trade
* Chief operating officer or chief operations officer, high-ranking corporate official
* Concept of operations, used in Systems Engineering Management Process
...
. Her tenure with the company ended in March 2015.
By January 2014, the company had refused offers of acquisition, including overtures from
Mark Zuckerberg
Mark Elliot Zuckerberg (; born ) is an American business magnate, internet entrepreneur, and philanthropist. He is known for co-founding the social media website Facebook and its parent company Meta Platforms (formerly Facebook, Inc.), o ...
, with Spiegel commenting that "trading that for some short-term gain isn’t very interesting."
In May 2014, the company acquired the software company AddLive to provide needed technology to create a new video chat feature. In that same month, it settled U.S.
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
(FTC) charges over its having misled users regarding its collection of their address book data and transmission of their locations (without notice or consent), and regarding its claim that user messages disappeared after their expiration (rather than remaining accessible, as they had). In December, the company acquired Vergence Labs for $15 million in cash and stock, who were the developers of
Epiphany Eyewear
Epiphany Eyewear are smartglasses developed by Vergence Labs. The glasses record video stored within the glasses' hardware for live-stream upload to a computer or social media. The glasses use smartphone technology. The head mounted display is a m ...
, and the
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on d ...
Scan for $50 million, which was revealed during the
Sony Pictures Entertainment hack
On November 24, 2014, a hacker group identifying itself as "Guardians of Peace" leaked a release of confidential data from the film studio Sony Pictures Entertainment (SPE). The data included personal information about Sony Pictures employees ...
.
In May 2015, the company moved from its original headquarters to a 47,000 ft
2 (4,366 m
2) office complex near
Venice Beach
Venice is a neighborhood of the city of Los Angeles within the Westside region of Los Angeles County, California.
Venice was founded by Abbot Kinney in 1905 as a seaside resort town. It was an independent city until 1926, when it was annexed by ...
and signed a 10-year
lease
A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...
. They were one of the first prominent
social media
Social media are interactive media technologies that facilitate the creation and sharing of information, ideas, interests, and other forms of expression through virtual communities and networks. While challenges to the definition of ''social medi ...
companies to establish themselves there, alongside others such as
Whisper
Whispering is an unvoiced mode of phonation in which the vocal cords are abducted so that they do not vibrate; air passes between the arytenoid cartilages to create audible turbulence during speech. Supralaryngeal articulation remains the ...
and
Tinder
Tinder is easily combustible material used to start a fire. Tinder is a finely divided, open material which will begin to glow under a shower of sparks. Air is gently wafted over the glowing tinder until it bursts into flame. The flaming tinder i ...
, giving Venice the new title of "
Silicon Beach
Silicon Beach is the Westside region of the Los Angeles metropolitan area that is home to more than 500 technology companies, including startups. It is particularly applied to the coastal strip from Los Angeles International Airport north to t ...
." In February 2017, two weeks before the company's IPO, ''
The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'' published a feature about Snap's role in turning the area into a technology hub, noting that Snap, with a total of 1,900 employees, had "already changed the face of Venice."
In September 2015, Snapchat acquired
Looksery
Looksery is an American software and photography company founded in 2013 by Victor Shaburov and Yurii Monastyrshin. The company is based in San Francisco and owned by Snap Inc. The company developed the Looksery application that does facial modif ...
to develop Lenses for its mobile app, a feature based on Looksery's facial recognition software.
In March, July, and August 2016, the company acquired
Bitstrips for $100 million, Obvious Engineering, the developers of Seene, for an undisclosed amount and Vurb for $100 million. Vurb formerly developed the eponymous
mobile
Mobile may refer to:
Places
* Mobile, Alabama, a U.S. port city
* Mobile County, Alabama
* Mobile, Arizona, a small town near Phoenix, U.S.
* Mobile, Newfoundland and Labrador
Arts, entertainment, and media Music Groups and labels
* Mobile ( ...
search engine
A search engine is a software system designed to carry out web searches. They search the World Wide Web in a systematic way for particular information specified in a textual web search query. The search results are generally presented in a ...
. The Vurb card-based engine removed the need to switch through multiple other applications on the device to perform a task.
In September 2016, the company officially named itself Snap Inc., and unveiled
smartglasses
Smartglasses or smart glasses are eye or head-worn wearable computers that offer useful capabilities to the user. Many smartglasses include displays that add information alongside or to what the wearer sees. Alternatively, smartglasses are som ...
known as
Spectacles
Glasses, also known as eyeglasses or spectacles, are vision eyewear, with lenses (clear or tinted) mounted in a frame that holds them in front of a person's eyes, typically utilizing a bridge over the nose and hinged arms (known as temples o ...
. In November 2016, the company filed documents for an
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
(IPO) with an estimated market value of $25–35 billion. In December 2016, the company opened
research and development
Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...
in
Shenzhen
Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern province ...
and acquired advertising and technology company Flite and
Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
-based augmented reality startup Cimagine Media for $30–40 million. A partnership issued in December 2016 with
Turner Broadcasting System
Turner Broadcasting System, Inc. (alternatively known as Turner Entertainment Networks from 2019 until 2022) was an American television and media conglomerate. Founded by Ted Turner and based in Atlanta, Georgia, it merged with Time Warner (lat ...
will allow integration of Turner properties on Snapchat, while cooperating with Snap Inc. to develop original content.
In January 2017, the company announced that it had established an international headquarters in
Soho
Soho is an area of the City of Westminster, part of the West End of London. Originally a fashionable district for the aristocracy, it has been one of the main entertainment districts in the capital since the 19th century.
The area was develop ...
,
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
. In early February 2017, the company confirmed their plans for an IPO in 2017 and its expectation to raise $3 billion. In early March 2017, the company went public under the trading symbol SNAP, and raised almost $30 billion in market capitalization on the first day of trading.
In late May 2017, the company acquired the location sharing app Zenly in a cash and stock deal. The Zenly app will remain functional, but its concepts were incorporated into a Snapchat feature added in June 2017.
In August 2017,
Business Insider
''Insider'', previously named ''Business Insider'' (''BI''), is an American financial and business news website founded in 2007. Since 2015, a majority stake in ''Business Insider''s parent company Insider Inc. has been owned by the German publ ...
reported that Google discussed an offer to buy the company for $30 billion in early 2016.
In October 2017, the company announced that it had formed a joint venture with
NBCUniversal
NBCUniversal Media, LLC is an American multinational mass media and entertainment conglomerate corporation owned by Comcast and headquartered at 30 Rockefeller Plaza in Midtown Manhattan, New York City, United States.
NBCUniversal is primari ...
to produce content for Snap's platforms, and that it had signed
Duplass Brothers Productions
Duplass Brothers Productions is an American independent film and television production company founded by Mark Duplass and Jay Duplass, two brothers who are also actors, directors, producers and writers. They have produced films such as ''The Puff ...
as its first partner.
In November 2017,
Tencent
Tencent Holdings Ltd. () is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue. It is also the w ...
acquired a 12% non-voting minority equity stake of the company in the open market.
On October 26, 2018, at
TwitchCon
TwitchCon is a semi-annual gaming convention for the livestreaming video platform Twitch. The convention is organized by Twitch Interactive and focuses on the general culture of livestreaming and video gaming. TwitchCon also serves as an opportu ...
, Snap launched a new desktop application for macOS and Windows known as Snap Camera. It allows users to utilize Snapchat filters via PC webcams in video chat and live streaming services such as
Skype
Skype () is a proprietary telecommunications application operated by Skype Technologies, a division of Microsoft, best known for VoIP-based videotelephony, videoconferencing and voice calls. It also has instant messaging, file transfer, deb ...
,
Twitch
Twitch may refer to:
Biology
* Muscle contraction
** Convulsion, rapid and repeated muscle contraction and relaxation
** Fasciculation, a small, local, involuntary muscle contraction
** Myoclonic twitch, a jerk usually caused by sudden muscle co ...
,
YouTube
YouTube is a global online video platform, online video sharing and social media, social media platform headquartered in San Bruno, California. It was launched on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim. It is owned by ...
, and
Zoom
Zoom may refer to:
Technology Computing
* Zoom (software), videoconferencing application
* Page zooming, the ability to magnify or shrink a portion of a page on a computer display
* Zooming user interface, a graphical interface allowing for image ...
. Snap also announced additional integration with Twitch.
In August 2022, ''
The Verge
''The Verge'' is an American technology news website operated by Vox Media, publishing news, feature stories, guidebooks, product reviews, consumer electronics news, and podcasts.
The website launched on November 1, 2011, and uses Vox Media' ...
'' reported that Snap would be laying off 20% of its 6,400-person workforce.
The layoffs primarily impacted the company's hardware division and the developer products including the separately run Zenly.
[
]
Products
The company develops and maintains the image messaging and multimedia
Multimedia is a form of communication that uses a combination of different content forms such as text, audio, images, animations, or video into a single interactive presentation, in contrast to tradition ...
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on d ...
Snapchat
Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before the ...
, as well as develops and manufactures the wearable camera called Spectacles
Glasses, also known as eyeglasses or spectacles, are vision eyewear, with lenses (clear or tinted) mounted in a frame that holds them in front of a person's eyes, typically utilizing a bridge over the nose and hinged arms (known as temples o ...
, a pair of smartglasses
Smartglasses or smart glasses are eye or head-worn wearable computers that offer useful capabilities to the user. Many smartglasses include displays that add information alongside or to what the wearer sees. Alternatively, smartglasses are som ...
that connect to the user's Snapchat account and records videos in a circular video format adjustable in any orientation. On February 20, 2017, Snap Spectacles
Glasses, also known as eyeglasses or spectacles, are vision eyewear, with lenses (clear or tinted) mounted in a frame that holds them in front of a person's eyes, typically utilizing a bridge over the nose and hinged arms (known as temples o ...
became available for purchase online. The company sold only 220,000 pairs of Snap Spectacles V1. The company developed and launched Spectacles V2 in April 2018 in the U.S., Canada, U.K. and France; and 13 more European countries in May 2018. On April 28, 2022, the company announced a mini drone
Drone most commonly refers to:
* Drone (bee), a male bee, from an unfertilized egg
* Unmanned aerial vehicle
* Unmanned surface vehicle, watercraft
* Unmanned underwater vehicle or underwater drone
Drone, drones or The Drones may also refer to:
...
called Pixy. Later that August, it was reported that future development of Pixy would be discontinued, while continuing to sell the current iteration of the drone.
Funding and shares
Snapchat app raised $485,000 in its seed round
Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' su ...
and an undisclosed amount of bridge funding from Lightspeed Ventures
Lightspeed Venture Partners is a global venture capital firm focusing on multi-stage investments in the enterprise, consumer, and health sectors. Lightspeed invests in seed, early and growth-stage companies.
The company invests in the U.S. and a ...
. By February 2013, Snapchat confirmed a $13.5 million Series A
A series A round (also known as series A financing or series A investment) is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchan ...
funding round led by Benchmark Capital
Benchmark is a venture capital firm based in San Francisco that provides seed money to startups.
History
The firm's most successful investment was a 1997 investment of $6.7 million in eBay for 22.1% of the company. In 2011, it invested $12 mill ...
, which valued the company at between $60 million and $70 million. In June 2013, Snapchat raised $60 million in a Series B funding
Venture capital financing is a type of funding by venture capital. It is private equity capital that can be provided at various stages or funding rounds. Common funding rounds include early-stage seed funding in high-potential, growth companies ( ...
round led by venture-capital firm Institutional Venture Partners. The firm also appointed a new high-profile board member, Michael Lynton of Sony
, commonly stylized as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. As a major technology company, it operates as one of the world's largest manufacturers of consumer and professional ...
's American division. By mid-July 2013, a media report valued the company at $860 million. On November 14, 2013, ''The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported that Facebook
Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin M ...
offered to acquire Snapchat for $3 billion, but Spiegel
Spiegel is German, Yiddish, and Dutch for "mirror". More specifically, it may refer to:
Publications
* '' Der Spiegel'', a weekly German magazine
* Der Spiegel (online), the online sibling of ''Der Spiegel''
Political
* Spiegel scandal, a 1962 ...
declined the cash offer. Tech writer Om Malik
Om Prakash Malik (born September 29, 1966) is an Indian-American web and technology writer. He is the founder and a former senior writer for GigaOM. He is now a partner at True Ventures.
Personal life and education
Malik was born in New Delhi. ...
then claimed on November 15, 2013, that Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
had offered $4 billion, but Spiegel again declined. On December 11, 2013, Snapchat confirmed $50 million in Series C funding from Coatue Management
Coatue is an American technology-focused investment manager led by founder and portfolio manager Philippe Laffont.
Coatue invests in public and private markets with a focus on technology, media, telecommunications. the consumer and healthcare se ...
. Beyond 2014, the company had achieved a $10–$20 billion valuation, depending on the source, raising $100 million in Series D funding led by KPCB
Kleiner Perkins, formerly Kleiner Perkins Caufield & Byers (KPCB), is an American venture capital firm which specializes in investing in incubation, early stage and growth companies. Since its founding in 1972, the firm has backed entrepreneurs ...
and $485 million in a Series E round led by Alibaba Group. Investors included General Catalyst
General Catalyst, formerly General Catalyst Partners (GCP), is an American venture capital firm focused on early stage and growth investments. The firm was founded in 2000 in Cambridge, Massachusetts, and also has offices in San Francisco, Palo A ...
, Kingdom Holding Company
The Kingdom Holding Company (KHC) ( ar, شركة المملكة القابضة) is a Saudi conglomerate holding company, based in Riyadh. The KHC is a publicly listed company on the Tadawul (Saudi stock exchange). The KHC consists of a select ...
, SV Angel, Tencent
Tencent Holdings Ltd. () is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue. It is also the w ...
and Yahoo
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo! Inc. (2017–present), Yahoo Inc., which is 90% owned by investment funds ma ...
. According to reports in May 2016, the company's estimated worth was said to be approaching $22.7 billion in the event of a new Series F round of investment of $1.8 billion from Spark Capital
Spark Capital is a venture capital firm in the United States, responsible for early-stage funding startups of consumer, commerce, FinTech, software, frontier, and media sectors. It has branches in San Francisco, Boston, and New York City.
Hi ...
, General Atlantic
General Atlantic (also known as "GA") is an American growth equity firm providing capital and strategic support for global growth companies, headquartered in New York, United States. The firm was founded in 1980 as the captive investment team for ...
, Sequoia Capital
Sequoia Capital is an American venture capital firm. The firm is headquartered in Menlo Park, California, and specializes in seed stage, early stage, and growth stage investments in private companies across technology sectors. , Sequoia's total a ...
, T. Rowe Price
T. Rowe Price Group, Inc. is an American publicly owned global investment management firm that offers funds, subadvisory services, separate account management, and retirement plans and services for individuals, institutions, and financial inter ...
, Meritech Capital Partners
Meritech Capital Partners is an American Venture Firm company focused on late-stage venture capital investments in information technology companies with a focus on consumer Internet and media, software and services, enterprise infrastructure, an ...
, Dragoneer Investment Group
The Dragoneer Investment Group (Dragoneer) is an American investment firm based in San Francisco, California. The firm focuses on technology investments in both public and private markets globally.
Background
Dragoneer is based in San Francis ...
and others, led by Fidelity Investments
Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is on ...
. Later, the company got an additional $200 million in the following Series FP round. Further reports in 2016 suggested that funding was almost at $3 billion and that Snapchat was targeting yearly revenues of a billion dollars.
Google reportedly offered Snap $30 billion in 2016 for acquisition, which Snap turned down.
2017 initial public offering
In January 2017, ''The Wall Street Journal'' reported that "people familiar with the matter" stated that Snap Inc. would share 2.5% of the money raised in an upcoming initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
(IPO) with the banks managing the IPO. It also reported that after the predicted March 2017 IPO, the two Snap co-founders would hold over "70% of the voting power" in the company and own around 45% of the total stock. On January 29, 2017, it was reported that the Snap Inc. IPO would likely take place on the New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
. As both the NYSE and Nasdaq had been "aggressively courting the listing for more than a year," the ''Wall Street Journal'' called it "a big competitive victory for the Big Board." Snap's IPO was estimated to value the company at between $20 billion and $25 billion, the largest IPO on a US exchange since Alibaba
Ali Baba (character), Ali Baba is a character from the folk tale ''Ali Baba and the Forty Thieves''.
Ali Baba or Alibaba may also refer to:
Films
* Ali Baba and the Forty Thieves (1902 film), ''Ali Baba and the Forty Thieves'' (1902 film), a F ...
debuted in 2014 at a value of $168 billion. Beyond the two founders, the two biggest shareholders for the planned early 2017 Snap IPO were Benchmark and Lightspeed Venture Partners, both prior investors and venture-capital firms from Silicon Valley
Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical areas San Mateo County ...
. They held a combined stake of about 20%. On March 1, 2017, it was reported that Snap Inc. "values itself at nearly $24B with its IPO pricing." Snap Inc.'s stock started trading on March 2, 2017, under the symbol SNAP, on the New York Stock Exchange.
When Snap reported earnings for the first time in May 2017, they reported a $2.2 billion quarterly loss, and the stock fell more than 20%, erasing most of the gains since the IPO. Its market capitalization reached $100 billion for the first time on 22 February 2021.
Controversy
Reggie Brown lawsuit
In February 2013, Reggie Brown sued Evan Spiegel and Bobby Murphy. Early investors also were eventually named in the lawsuit. Brown said that he had once been the chief marketing officer
A chief marketing officer (CMO), also called a global marketing officer or marketing director, or chief brand officer, is a corporate executive responsible for managing marketing activities in an organization. Whilst historically these titles may ...
for the initial selfie
A selfie () is a self-portrait photograph, typically taken with a digital camera or smartphone, which may be held in the hand or supported by a selfie stick. Selfies are often shared on social media, via social networking services such as F ...
app used to launch Snapchat, offering evidence of contacts with publications such as ''Cosmopolitan
Cosmopolitan may refer to:
Food and drink
* Cosmopolitan (cocktail), also known as a "Cosmo"
History
* Rootless cosmopolitan, a Soviet derogatory epithet during Joseph Stalin's anti-Semitic campaign of 1949–1953
Hotels and resorts
* Cosmopoli ...
''. He also claimed that he had come up with the original concept, which he had ultimately called Picaboo, and that he had created the mascot logo
A logo (abbreviation of logotype; ) is a graphic mark, emblem, or symbol used to aid and promote public identification and recognition. It may be of an abstract or figurative design or include the text of the name it represents as in a wordma ...
for the product while working with Spiegel to promote and market the idea. Originally titled "Toyopa Group, LLC," Brown said that he had named the newly formed company as well. Brown's lawyers offered documentation of a collaboration with Spiegel and Murphy, which included the filing of an original patent by the three Stanford
Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is considere ...
classmates, but Snapchat described the lawsuit as meritless and called Brown's tactics a shakedown. During April's depositions, Brown testified that he had believed he was an equal partner, and that he had agreed to share costs and profits. Spiegel instead described Brown as an unpaid intern who had been providing valuable experience, and although Murphy claimed that he had not fully understood what Brown's role was supposed to have been, he too characterized Brown's involvement as having been that of an internship. Months later, Spiegel dismissed the lawsuit as an example of opportunists who seek out rapidly successful companies in an attempt "to also profit from the hard work of others."
On 9 September 2014, the company announced that they had settled the lawsuit for an initially undisclosed amount. The settlement amount was revealed on February 2, 2017, in Snap's SEC public filing to be $157.5 million. As part of the settlement
Settlement may refer to:
*Human settlement, a community where people live
*Settlement (structural), the distortion or disruption of parts of a building
* Closing (real estate), the final step in executing a real estate transaction
*Settlement (fin ...
, they credited Brown with the conceptual idea for Snapchat.
The press release published by Snapchat's communication department quoted Spiegel:"We are pleased that we have been able to resolve this matter in a manner that is satisfactory to Mr. Brown and the Company. We acknowledge Reggie's contribution to the creation of Snapchat and appreciate his work in getting the application off the ground."
FTC settlement
The Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
alleged that the company had exaggerated to the public the degree to which mobile app images and photos could actually be made to disappear. Following a settlement in 2014, Snapchat was not fined, but the app service agreed to have its claims and policies monitored by an independent party for a period of 20 years.
2018 redesign
The redesign of the Snapchat app in early 2018 made changes for which many users were not happy. Around 1.2 million people petitioned Snap, Inc. to roll back the redesign. Snap, Inc's reply makes no concessions, other than noting, "We completely understand the new Snapchat has felt uncomfortable for many."
Due to the redesign and other market factors in 2018, such as the growth of Instagram Stories and WhatsApp Status, Daily Active Users (DAU) of the app only rose 2% from Q4 2017. Snap, Inc. stock fell more than 15% in after-hours trading following the earnings report release. Growth of daily active users slowed in Q1 2018, and the growth rate for Q2 2018 was "planned to decelerate rapidly from Q1 levels." Snap, Inc. has commented on the redesign, saying, "We have also started to realise some of the positive benefits f the redesign including increased new user retention for older users." Some publishers feel the turn towards the older demographic spells the end for the app.
Data storage
In a December 2020 announcement, Google Cloud Google Cloud Platform offers numerous integrated cloud-computing services, including compute, network, and storage.
Products
Past and present products under the Google Cloud platform include:
Current
* Google Cloud Datastore, a NoSQL databa ...
confirmed the development of the memorandum of understanding (MoU) it signed with Aramco
Saudi Aramco ( ar, أرامكو السعودية '), officially the Saudi Arabian Oil Company (formerly Arabian-American Oil Company) or simply Aramco, is a Saudi Arabian public petroleum and natural gas company based in Dhahran. , it is one of ...
, Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
. The update stated the possibility of exploring options to establish cloud services in Saudi, where it confirmed storing Snapchat
Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before the ...
data. The decision was contested by Access Now
Access Now is a non-profit organization founded in 2009 with a mission to defend and extend the digital civil rights of people around the world. Access Now supports programs including an annual conference on Human Rights (RightsCon), an index ...
, a non-profit organization, and CIPPIC The Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic (CIPPIC) is a legal clinic at the University of Ottawa focused on maintaining fair and balanced policy making in Canada related to technology. Founded in the fall of 2003 by M ...
, a Canadian public interest technology law clinic. The firms objected to Google's decision of choosing Saudi Arabia as its new Google Cloud region overlooking an alarming record of human rights abuse and longstanding surveillance
Surveillance is the monitoring of behavior, many activities, or information for the purpose of information gathering, influencing, managing or directing. This can include observation from a distance by means of electronic equipment, such as c ...
accusations. The firms claimed that placing the personal information of millions of Snapchat users there would put it under the jurisdiction of the government of Saudi Arabia, jeopardizing the security of the data.
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