Snapchat has planned to acquire mobile search and recommendation app Vurb for a price of more than $110 million. Not only this, Snapchat will also be paying the additional team retention bonus to the existing employees as may be required.
The Venice entertainment app maker Snapchat, has planned to invest more than $100 million in cash and stock to purchase the San Francisco start-up Vurb. However, the deal is not yet finalized.
The 5-year-old startup, Vurb, is backed by Redpoint Ventures, Tencent, Marc Benioff, and Dropbox CEO Drew Houston, and a few others. Vurb describes itself as the only search app that gives its user suggestions and recommendations tailored to what he/she loves, and keeps them updated with the trending topics they care about. The info on their portal reads the app is to “Find and explore anything from sights to see, restaurants to try, books to read, events, music, and more. Get results and suggestions based on your interests, what’s trending, time of day, weather, and location in the form of easy-to-use Vurb Cards. Then take action right from the Card — access reviews, make reservations, book tickets, stream TV and music, and even hire a ride”.
It is of no doubt the that Snapchat is rising. The entertainment app initially declined the acquisition bid of $3 billion from Facebook in 2013, and now it is reported that Snapchat has grown to 150 million daily users with a valuation worth of more than $20 billion. Snapchat also surpassed Twitter this year in daily active users.
The acquisition is said to resolve some the biggest problems of Snapchat. At present, the most discussed problem is the confusing interface which makes it difficult for new users to get up and run. Once they start to sort out the navigation issues on a not-at-all intuitive platform, the users are left to fend for themselves when it comes to finding people to follow. Vurb’s discovery search engine should make it easier to evaluate the user accounts worth following in addition to providing some rather unique monetization streams from geo-targeted search.