Snapchat

Discussion in 'Trading' started by wxytrader, Dec 9, 2023.

  1. This could have potential for a buyout or even a hostile takeover.
    What is the typical premium paid for tech buyouts so I can buy some leaps?

    Current market cap: 24.84B. If it's 20% then were looking at around 30B or about $18.29 share price. Linkdin went for $26.2B and I don't know anybody who used it so I think the premium for snapchat would be much higher.

    In November 2016, the company filed documents for an initial public offering (IPO) with an estimated market value of $25–35 billion

    In August 2017, Business Insider reported that Google discussed an offer to buy the company for $30 billion in early 2016

    The stock price was about $13-$16 in 2017 similar to now. Maybe google takes another crack at it because they are stilted over having no social media footprint other than youtube which isn't very interactive.

    Twitter and Snapchat are expected to generate $5.58 billion and $4.86 billion, respectively, in advertising revenue for 2022, with the combined value still less than the $11 billion projected for TikTok

    Twitter went for 44B and I can't see snapchat going for less than twitter especially for similar ad revenue performance.

    In 2023, the brand value of TikTok/Douyin amounted to 66 billion U.S. dollars.

    44B/5.58B=$7.8 per $1 in ad revenue.
    so
    $7.8 x 4.86B=37.9B for snapchat.

    So I would think the price tag would be around $45-$50 billion or a share price between $27-$30 per share. With google having a market cap: $1.698 Trillion they could force the issue and win the votes from shareholders and management in the current climate.

    If buyout is $30 per share by July 2024
    27 strike @ .41 will cost $4100 but return 30k
    26 strike @ .47 will cost $4700 but return 40k
    25 strike @ .55 will cost $5500 but return 50k
    etc
     
    Last edited: Dec 9, 2023
  2. Kind of late, Stoney on his GBA stock thread recommended buying and holding at $8 after the earnings mess.
     
  3. tomkat22

    tomkat22

    I thought all the kids had moved on from Snapchat? All I hear about these days is Tik Tok,Instagram and occasionally Twitter.
     
  4. Yeah they usually mark the price up a bit to avoid giving it away at a bargain and get it past the shareholders...to me this is buyout territory now...just like us they don't want to sell at the bottom :)
     
  5. destriero

    destriero

    My kids weaned off of SNAP once they hit 18-19. What's the teen demo in this country? Any growth?
     
  6. No idea but I don't see Spiegel bringing this back to ath's... probably rather just chill on his yacht. Is he really going to risk his lifestyle being stubborn about selling?

    They have some acquisitions that didn't pan out and the failed pixie. I think it would be a good time to sell.... everything is quiet.

    https://theorg.com/iterate/evan-spiegel-companies#fitanalytics
     
  7. It is like Spotify or Pinterest, these companies were designed to be bought without the main intention of beeing profitable but to havy many customers. Now as nobody buys the firms are no longer worth anything. Don't eye at Twitter. That was a mistake not an investment.
     
    wxytrader likes this.
  8. PINS profits in 2021 of $300 million and $6.7 million last Q go against their business’s core charter of losing money!
     
  9. Go ahead, buy them, may Fortuna be with you. I'd rather buy TUI and AMD but do as you please.
     
    TrailerParkTed likes this.