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Business Insider

Snapchat is in talks to buy a search start-up for over $100 million

Acquisition will be a 75 per cent stock and 25 per cent cash deal

PUBLISHED : Tuesday, 16 August, 2016, 6:53am
UPDATED : Tuesday, 16 August, 2016, 2:03pm

US Image messaging app Snapchat is buying search start-up Vurb in a stock and cash deal totaling over US$100 million, according to The Information.

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."

The five-year-old startup is backed by Redpoint Ventures, Tencent, Marc Benioff, and Dropbox CEO Drew Houston, among others.

A Snapchat spokeswoman declined to comment on talks with Vurb when reached by Business Insider. Redpoint Ventures also declined to comment.

Snapchat's acquisition will be a 75 per cent stock and 25 per cent cash deal, notes The Information. The report says that Vurb CEO and founder Bobby Lo is also getting a multi-year retention package of "around US$75 million" as part of the deal.

Vurb's mobile app integrates with services like Yelp for restaurant information and Fandango for movie tickets. The app also has a social aspect that shows Foursquare-like tips and recommendations. Users can also message friends directly in the app with rich media "cards" that show information like restaurant details.

Vurb would be the second high profile buy Snapchat has made this year following its acquisition of Bitmoji for over US$100 million last month.

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