What was Snapchat's primary motive for acquiring a young social media company, despite its losses?

The primary motive behind Snapchat acquiring a young social media company, despite its losses, primarily focused on acquiring technical expertise. In the fast-evolving digital landscape, companies often seek to enhance their capabilities to innovate and stay competitive. By integrating the talent and technology of a new social media company, Snapchat could leverage new skills, advanced technologies, and innovative features that might not have been present in their existing operations.

Acquiring technical expertise allows companies to fill gaps in their current offerings, adopt new features quickly, and potentially accelerate the development of future products. This strategic move is less about making immediate profits and more about establishing a stronger foundation for future growth and innovation.

While expanding market share, enhancing brand popularity, and increasing revenue are valuable motives for acquisitions in general, the context of Snapchat’s situation aligns more closely with the crucial need for technical prowess to sustain and improve their competitive edge. When assessed in light of current industry trends where technological advancement is vital, the importance of gaining technical expertise becomes evident.