Snap Inc. is an American technology 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. , he had a personal net worth of $2.6 billion according to ''Forbes''.
Early li ...
,
Bobby Murphy
Robert Cornelius Murphy (born July 19, 1988) is an American Internet entrepreneur and software engineer. He is the co-founder and the CTO of the American multinational technology company Snap Inc., which he created (as Snapchat Inc.) with E ...
, 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 social media and instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of the app are that pictures and messages, known as "snaps", are usually availa ...
,
Spectacles
Glasses, also known as eyeglasses (American English), spectacles (Commonwealth English), or colloquially as specs, are Visual perception, vision eyewear with clear or tinted lens (optics), lenses mounted in a frame that holds them in front ...
, 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 c ...
. 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. Snap is co-owned by
Tencent
Tencent Holdings Ltd. ( zh, s=腾讯, p=Téngxùn) is a Chinese Multinational corporation, multinational technology Conglomerate (company), conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimed ...
(which holds a 45.43% stake) and
NBCUniversal
NBCUniversal Media, LLC (abbreviated as NBCU and Trade name, doing business as NBCUniversal or Comcast NBCUniversal since 2013) is an American Multinational corporation, multinational mass media and Show business, entertainment conglomerate (comp ...
, a division of
Comcast
Comcast Corporation, formerly known as Comcast Holdings,Before the AT&T Broadband, AT&T merger in 2001, the parent company was Comcast Holdings Corporation. Comcast Holdings Corporation now refers to a subsidiary of Comcast Corporation, not th ...
(whose stake is undisclosed).
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. , he had a personal net worth of $2.6 billion according to ''Forbes''.
Early li ...
,
Reggie Brown and
Bobby Murphy
Robert Cornelius Murphy (born July 19, 1988) is an American Internet entrepreneur and software engineer. He is the co-founder and the CTO of the American multinational technology company Snap Inc., which he created (as Snapchat Inc.) with E ...
upon the relaunch of the photo sharing app Picaboo as Snapchat. On December 31, 2013,
the application was hacked and 4.6 million usernames and phone numbers were leaked to the Internet.
By January 2014, the company had refused offers of acquisition,
including overtures from
Mark Zuckerberg
Mark Elliot Zuckerberg (; born May 14, 1984) is an American businessman who co-founded the social media service Facebook and its parent company Meta Platforms, of which he is the chairman, chief executive officer, and controlling sharehold ...
,
[ 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) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
(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, 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 smartphone, phone, tablet computer, tablet, or smartwatch, watch. Mobile applications often stand in contrast to desktop appli ...
Scan for $50 million, which was revealed during the 2014 Sony Pictures hack.
In May 2015, the company moved from its original headquarters to a 47,000 ft2 (4,366 m2) office complex near Venice Beach 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 online platforms to establish themselves there, alongside others such as Whisper and Tinder
Tinder is easily Combustibility and flammability, combustible material used to Firemaking, 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 unt ...
, giving Venice the new title of "Silicon Beach
Silicon Beach is the Westside (Los Angeles County), Westside region of the Los Angeles metropolitan area that is home to more than 500 technology companies, including Startup company, startups. It is particularly applied to the coastal strip fr ...
." In February 2017, two weeks before the company's IPO, ''The New York Times
''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' 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 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 search engine
A search engine is a software system that provides hyperlinks to web pages, and other relevant information on World Wide Web, the Web in response to a user's web query, query. The user enters a query in a web browser or a mobile app, and the sea ...
. 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. Many smartglasses include displays that add information alongside or to what the wearer sees. Alternatively, smartglasses are sometimes defined as glasses that are able to c ...
known as Spectacles
Glasses, also known as eyeglasses (American English), spectacles (Commonwealth English), or colloquially as specs, are Visual perception, vision eyewear with clear or tinted lens (optics), lenses mounted in a frame that holds them in front ...
. 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 investm ...
(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 some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...
in Shenzhen
Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...
and acquired advertising and technology company Flite and Israel
Israel, officially the State of Israel, is a country in West Asia. It Borders of Israel, shares borders with Lebanon to the north, Syria to the north-east, Jordan to the east, Egypt to the south-west, and the Mediterranean Sea to the west. Isr ...
-based augmented reality startup Cimagine Media for $30–40 million. A partnership issued in December 2016 with Time Warner
Warner Media, LLC ( doing business as WarnerMedia) was an American multinational mass media and entertainment conglomerate owned by AT&T. It was headquartered at the 30 Hudson Yards complex in New York City.
It was established as Time Warne ...
’s Turner Broadcasting System
Turner Broadcasting System, Inc. was an American television and media conglomerate founded by Ted Turner in 1965. Based in Atlanta, Georgia, it merged with Time Warner (later WarnerMedia) on October 10, 1996. As of April 2022, all of its asse ...
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, short for "South of Houston Street, Houston Street", is a neighborhood in Lower Manhattan, New York City. Since the 1970s, the neighborhood has been the location of many artists' lofts and art galleries, art installations such as The Wall ...
, London
London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
. 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
''Business Insider'' (stylized in all caps: BUSINESS INSIDER; known from 2021 to 2023 as INSIDER) is a New York City–based multinational financial and business news website founded in 2007. Since 2015, a majority stake in ''Business Inside ...
'' 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 (abbreviated as NBCU and Trade name, doing business as NBCUniversal or Comcast NBCUniversal since 2013) is an American Multinational corporation, multinational mass media and Show business, entertainment conglomerate (comp ...
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 Puf ...
as its first partner. In November 2017, Tencent
Tencent Holdings Ltd. ( zh, s=腾讯, p=Téngxùn) is a Chinese Multinational corporation, multinational technology Conglomerate (company), conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimed ...
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 Convention (meeting), convention for the video livestreaming service Twitch (service), Twitch. It is organized by Twitch Interactive and focuses on the culture of livestreaming, entertainment, esports and internet cultu ...
, Snap launched a new desktop application for macOS
macOS, previously OS X and originally Mac OS X, is a Unix, Unix-based operating system developed and marketed by Apple Inc., Apple since 2001. It is the current operating system for Apple's Mac (computer), Mac computers. With ...
and Windows
Windows is a Product lining, product line of Proprietary software, proprietary graphical user interface, graphical operating systems developed and marketed by Microsoft. It is grouped into families and subfamilies that cater to particular sec ...
known as Snap Camera. It allows users to utilize Snapchat
Snapchat is an American multimedia social media and instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of the app are that pictures and messages, known as "snaps", are usually availa ...
filters via PC webcams in video chat and live streaming services such as Skype
Skype () was a proprietary telecommunications application operated by Skype Technologies, a division of Microsoft, best known for IP-based videotelephony, videoconferencing and voice calls. It also had instant messaging, file transfer, ...
, 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 c ...
, YouTube
YouTube is an American social media and online video sharing platform owned by Google. YouTube was founded on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim who were three former employees of PayPal. Headquartered in ...
, and Zoom. Snap also announced additional integration with Twitch.
In August 2022, ''The Verge
''The Verge'' is an American Technology journalism, technology news website headquarters, headquartered in Lower Manhattan, New York City and operated by Vox Media. The website publishes news, feature stories, guidebooks, product reviews, cons ...
'' 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.[
On 5 February 2024, Snap Inc. announced it would lay off 10% of its global workforce, approximately 500 employees, partly to "promote in-person collaboration", marking another significant reduction following a 20% staff cut in 2022. On September 12, 2024, Snap appointed Yahoo CEO ]Jim Lanzone
James Lanzone (born January 20, 1971) is an American businessman and the CEO of Yahoo Inc. Previously, he was CEO of Tinder. He is also the former president and CEO of CBS Interactive, a top 10 Internet property that operated key websites includ ...
to its board of directors.
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 (literary theory), writing, Sound, audio, images, animations, or video, into a single presentation. T ...
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a smartphone, phone, tablet computer, tablet, or smartwatch, watch. Mobile applications often stand in contrast to desktop appli ...
Snapchat
Snapchat is an American multimedia social media and instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of the app are that pictures and messages, known as "snaps", are usually availa ...
, as well as the Snapchat's Augmented Reality (AR) ad lens. The function was launched in September 2015. Specifically, the AR ad lens is one of the unique features of Snapchat, which allows advertisers to attract their target audience with various innovative lenses. Users can also use these lenses to change their faces, appearance, and even surroundings based on their preferences, and share those visual images or videos within their social networks. In addition, the company also develops and manufactures the wearable camera called Spectacles
Glasses, also known as eyeglasses (American English), spectacles (Commonwealth English), or colloquially as specs, are Visual perception, vision eyewear with clear or tinted lens (optics), lenses mounted in a frame that holds them in front ...
, a pair of smartglasses
Smartglasses or smart glasses are eye or head-worn wearable computers. Many smartglasses include displays that add information alongside or to what the wearer sees. Alternatively, smartglasses are sometimes defined as glasses that are able to c ...
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 (American English), spectacles (Commonwealth English), or colloquially as specs, are Visual perception, vision eyewear with clear or tinted lens (optics), lenses mounted in a frame that holds them in front ...
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 called Pixy. Later that year in 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, also known as seed funding or seed capital, is a form of securities offering in which an investor puts capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' suggest ...
and an undisclosed amount of bridge funding from Lightspeed Venture Partners
Lightspeed Venture Partners is a global venture capital firm focusing on seed stage, early stage investments and growth stage investments in the enterprise, fintech, consumer and healthcare sectors. Lightspeed has eleven offices globally and as o ...
. By February 2013, Snapchat confirmed a $13.5 million Series A
A series A is the name typically given to a company's first significant round of venture capital financing. It can be followed by the word round, investment or financing. The name refers to the class of preferred stock sold to investors in exchan ...
funding round led by Benchmark
Benchmark may refer to:
Business and economics
* Benchmarking, evaluating performance within organizations
* Benchmark price
* Benchmark (crude oil), oil-specific practices
Science and technology
* Experimental benchmarking, the act of defining a ...
, which valued the company at between $60 million and $70 million. In June 2013, Snapchat raised $60 million in a Series B funding round led by venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
firm Institutional Venture Partners
Institutional Venture Partners (IVP) is a US-based venture capital firm focused on fast-growing technology companies. IVP was founded in 1980, as one of the first venture capital firms in Silicon Valley.
History
Reid W. Dennis, the founder of In ...
. The firm also appointed a new high-profile board member, Michael Lynton
Michael Mark Lynton (born January 1, 1960) is a businessman and current chairman of Snap Inc. He previously served as chairman and chief executive of Sony Pictures Entertainment. In 2017, Lynton stepped down as CEO of Sony Entertainment to becom ...
of Sony
is a Japanese multinational conglomerate (company), conglomerate headquartered at Sony City in Minato, Tokyo, Japan. The Sony Group encompasses various businesses, including Sony Corporation (electronics), Sony Semiconductor Solutions (i ...
'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'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'' reported that Facebook
Facebook is a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
offered to acquire Snapchat for $3 billion, but Spiegel declined the cash offer. Tech writer Om Malik
Om Prakash Malik (Hindi: ॐ प्रकाश मलिक; born September 29, 1966) is an Indian-American web and technology writer. He founded and wrote content for Gigaom, which he sold in 2015 after it faced financial difficulty. He authored ...
then claimed on November 15, 2013, that Google
Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...
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 management firm led by founder and portfolio manager Philippe Laffont.
Coatue invests in both public and private markets, with a focus on technology, media, telecommunications, as well as the c ...
.
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 and $485 million in a Series E round led by Alibaba Group
Alibaba Group Holding Limited, branded as Alibaba (), is a Chinese Multinational corporation, multinational technology company specializing in E-commerce in China, e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzho ...
. Investors included General Catalyst, Kingdom Holding Company
The Kingdom Holding Company (KHC; ) is a Saudi conglomerate holding company, based in Riyadh. The KHC is a publicly listed company on the Tadāwul (Saudi stock exchange).
The KHC consists of a team of experienced investment specialists dire ...
, SV Angel
SV Angel Management LLC (SVA) is an American venture capital firm based in San Francisco, California. The firm focuses on investments related to the AI, software and IT sectors.
Background
Until mid-2009, Ron Conway made most of his investme ...
, Yahoo!
Yahoo (, styled yahoo''!'' in its logo) is an American web portal that provides the search engine Yahoo Search and related services including My Yahoo, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Sports, y!entertainment, yahoo!life, and its a ...
, NBCUniversal
NBCUniversal Media, LLC (abbreviated as NBCU and Trade name, doing business as NBCUniversal or Comcast NBCUniversal since 2013) is an American Multinational corporation, multinational mass media and Show business, entertainment conglomerate (comp ...
, and Tencent
Tencent Holdings Ltd. ( zh, s=腾讯, p=Téngxùn) is a Chinese Multinational corporation, multinational technology Conglomerate (company), conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimed ...
. 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, General Atlantic
General Atlantic, legal main entity General Atlantic Service Company, L.P., (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. T ...
, Sequoia Capital
Sequoia Capital Operations, LLC is an American venture capital firm headquartered in Menlo Park, California, specializing in seed stage, early stage, and growth stage investments in private companies across technology sectors. the firm had appro ...
, T. Rowe Price, Meritech Capital Partners, Dragoneer Investment Group and others, led by Fidelity Investments
Fidelity Investments, formerly known as Fidelity Management & Research (FMR), owned by FMR LLC and headquartered in Boston, Massachusetts, provides financial services. Established in 1946, the company is one of the largest asset managers in the ...
. 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 investm ...
(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, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
. 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 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 is 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 area of the Santa Clara Valley ...
. 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.
In February 2024 stock fell 30% after earnings with disappointing profit guidance. Market capitalisation as of 3 March 2024 was $18B, below 2017 IPO level.
Controversy
Reggie Brown lawsuit
In February 2013, Reggie Brown sued Evan Spiegel and Bobby Murphy. Early investors were also eventually named in the lawsuit. Brown said that he had once been the chief marketing officer
A chief marketing officer (CMO), also called a chief brand officer (CBO), is a C-suite corporate executive responsible for managing marketing activities in an organization. The CMO leads brand management, marketing communications (including adver ...
for the initial selfie
A selfie () is a self-portrait photograph or a short video, typically taken with an electronic camera or smartphone.
The camera would be usually held at arm's length or supported by a selfie stick instead of being controlled with a self-timer ...
app used to launch Snapchat, offering evidence of contacts with publications such as ''Cosmopolitan
Cosmopolitan may refer to:
Internationalism
* World citizen, one who eschews traditional geopolitical divisions derived from national citizenship
* Cosmopolitanism, the idea that all of humanity belongs to a single moral community
* Cosmopolitan ...
''. 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 that it represents, as in ...
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
Leland Stanford Junior University, commonly referred to as Stanford University, is a private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth governor of and th ...
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 given an opportunity to earn 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 2 February, 2017, in Snap's SEC public filing to be $157.5 million. As part of the settlement, 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) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
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 (GCP) is a suite of cloud computing services offered by Google that provides a series of modular cloud services including computing, data storage, data analytics, and machine learning, alongside a set of management tools ...
confirmed the development of the memorandum of understanding (MoU) it signed with Saudi Aramco
Saudi Aramco ( ') or Aramco (formerly Arabian-American Oil Company), officially the Saudi Arabian Oil Company, is a majority state-owned petroleum and natural gas company that is the national oil company of Saudi Arabia. , it is the fourth- l ...
. The update stated the possibility of exploring options to establish cloud services in Saudi, where it confirmed storing Snapchat
Snapchat is an American multimedia social media and instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of the app are that pictures and messages, known as "snaps", are usually availa ...
data. The decision was contested by Access Now
Access Now is a non-profit organization headquartered in Brooklyn, New York City, in the United States. It was founded in California in July 2009 and focuses on digital civil rights. The organization issues reports on global Internet censorship, ...
, a non-profit organization, and CIPPIC, 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 ...
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.
California civil rights lawsuit
In June 2024, Snap paid $15 million to settle a lawsuit brought by the California Civil Rights Department alleging that the company discriminated against female employees with respect to pay and promotions, failed to prevent workplace sexual harassment, and retaliated against women who complained.
References
External links
*
{{Authority control
2011 establishments in California
2017 initial public offerings
Companies based in Los Angeles
Companies listed on the New York Stock Exchange
Holding companies established in 2016
Mass media companies established in 2011
Internet properties established in 2011
Mass media companies of the United States
Social media companies of the United States
Technology companies based in Greater Los Angeles
Technology companies established in 2011
Venice, Los Angeles