Snapchat is eyeing a deal to purchase Vurb, a search and recommendation app for $110 million. The app may eventually boost the search feature of the messaging app.
While the terms and clauses of the deal are still not out, it is not sure why Snapchat is ready to pay that much for the deal. The deal includes retention pay out, USA Today reported.
The news of Snapchat acquiring Vurb first came out on The Information. The news suggests that the camera sector of the app will get more emphasize and the web search tools can be used by the users.
The amount will be received by Bobby Lo, the chief executive of Snapchat. He is about to receive $75 and the remaining may get split among the loyal employees who stick to the company for long, Los Angeles Times reported.
The Vurb was formed back in 2011 but it was launched as an app for iPhone in 2015. It is a company of San Francisco. The search results of the app are given as cards. The app was then launched on Amazon and Android devices. It allows the user to find movies, restaurants and much more, near them.
Vurb is not only an app to search places it is combination of so many elements. When someone searches for a restaurant, it provides search results based on the Yelp reviews, then it gives direction with the help of Apple maps and can also help one find a cab to reach the place.
There is no news if Vurb will be a standalone app that it was previously or its features will be merged to that of Snapchat. Snapchat though is a messaging app in the first place also provides stories of its partner outlets.
Snapchat has been quite aggressive about its promotion in the recent times but it has not commented on the deal. Previously Snapchat started selling video ads with the use of automated advertising tools.
Vurb is another start-up aging five years that is going to be acquired by a bigger entity. The lack of fund is blamed for the sudden selling of the app, Techcrunch reported.
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