“From the windows of the new Snap offices on Ocean Park Boulevard, Snap employees now see Gulfstreams, Bombardiers, and Embraer private jets, filled with billionaires from Silicon Valley swooping into town. Notably, however, some of these venture capitalists, entrepreneurs, and technology C.E.O.s have their eye on Snap, too,” Nick Bilton writes for Vanity Fair. “Recently, they have been sharing a theory that Snap could one day see its headquarters move yet again, this time to Cupertino, right smack in the middle of Apple’s own office park. The reason, according to this conjecture, is that Apple could end up buying Snap.”
“From the moment it was espoused, I could see why it was a fascinating Silicon Valley parlor game: from a business perspective, such a partnership would make sense for both companies, perhaps more than any speculative partnership that I’ve heard about in years.,” Bilton writes. “For Apple, Snap could offer value on multiple levels. Beyond iMessages, which some see as a sort-of inclusionary social network, Apple doesn’t have a foothold of any kind in the space.”
“Like Snap, Apple covets teens. Apple and Snap also have a common competitor in Facebook, which Apple may begrudgingly need (it’s one of the reasons people are so addicted to its phones) and Snap straight up hates for consistently copying its product features. Apple, with its nearly $900 billion valuation, also has the money. The company currently has almost $300 billion—yes, billion—in cash on hand. Snap currently has a market cap of around $22 billion,” Bilton writes. “But perhaps most important, Snap appears key to Apple’s vision of itself and its future. Speaking on an earnings call last year, Tim Cook told investors that he sees the future of Apple as an augmented-reality company, and that A.R. will ‘change everything.'”
Much more in the full article here.
MacDailyNews Take: Buying Snap would be Apple’s largest ever acquisition, at least seven times larger than the $3 billion they paid for Beats Electronics.
That said, imagining Snap in the hands of a Google or Amazon, might lead Apple’s management to at least consider setting a new all-time acquisition record price.