Snapchat may buy personalized search app Vurb for $200 million
Snapchat is buying search startup Vurb that helps people find things to do. Snapchat is paying $200 million in a stock and cash deal totaling around $200 million, as first reported by The Information.
About half of that money will go to investors, while the rest will go as retention payouts to current employees, an unusually high proportion.
According to the Sources, Snapchat’s acquisition will be a 75% stock and 25% cash deal.
CEO and founder of VURB, Bobby Lo is also getting a multiyear retention package of “around $75 million” as part of the deal.
Business Insider has independently confirmed the process of acquiring personalized search app Vurb and apparently it’s a done deal.
Vurb bills itself as an experience search engine that helps people easily find, save and do the best things by connecting community recommendations, rich content, and useful services.
A person familiar with the deal speculated that Snapchat is mainly interested in Vurb’s team which is highly regarded rather than its product, which hasn’t really taken off. Hence, the high percentage of the sale devoted to retaining Vurb employees.
Vurb’s mobile app integrates with services for restaurant information and Fandango for movie tickets. The app also has a social aspect that shows Foursquare-like tips and recommendations. Users can message to friends directly in the app with rich media cards that show information like restaurant details.
Source : Business Insider