Snapchat Inc. is in talks to buy a personalized search app created by Lo, the company plans to spend over a 100 million dollars in cash and shares to acquire Verbify Inc. which is a 5 year old startup based in San-Francisco.
Snapchat is currently seeing some major competition as Facebook recently unveiled Instagram stories to rival the popular app and needs to up its game to survive. Snapchat Inc. has a lot of cash for acquisitions as it has raised over 2 billion dollars in the past five years from investors.
Apart from the 100 million dollar purchase, Snapchat will also be spending 75 million dollars on Verbify’s CEO, Mr Lo, the amount will be spread over many years on the condition that he stays at Snapchat. Snapchat also plans to share approximately 20 million dollars on other employees willing to stick around.
Verbify’s app, Vurb is an app which seeks to get information from other apps on a user’s smartphone and collect data to give users specific information on where to dine, party and enjoy themselves.
Snapchat CEO Evan Spiegel seems fond of Vurb and Verbify CEO, Lo and that is probably one reason for the acquisition. Vurb has raised some funds in the past such as $2 million in 2013 from a group of top investors from PayPal, Dropbox and Applied Semantics, it also raised an extra $8 million from Redpoint Ventures, Stanford University among others which took the value of the company to $30 million.