Why it matters to you
Snapchat has proven with its Spectacles that it can make popular hardware, and now it could be venturing into the realm of drones.
Snapchat’s parent company Snap may not be flying high when it comes to the stock market, but the company is hoping that it might reach new heights through a different medium. According to The Information, Snap is “in talks to acquire Zero Zero Robotics,” a Chinese selfie drone manufacturer. Should the deal prove successful, it would be Snap’s second foray into the hardware space following the success of its glasses — the Spectacles.
As it stands, Zero Zero already has quite the deal worked out with an American company. Apple maintains the exclusive right to sell the drone maker’s $500 Hover Camera Passport Drone, which as its name suggests, hovers above you and takes aerial selfies. But according to The Information’s sources, it would appear that Zero Zero “had been looking to raise money when it made contact with Snap.” After all, it wouldn’t be the first time that a once-successful drone company found itself in dire straits.
Moreover, as TechCrunch pointed out, Snap has previously snapped up struggling drone companies at the eleventh hour. For example, the company reportedly bought Ctrl Me Robotics, which might otherwise have shut down operations.
The deal is reportedly within the $150 million to $200 million range, and while this certainly represents an impressive sum, it’s not the most Snap has paid in an acquisition. When it bought social map company Zenly, it was reported that Snap paid more than $250 million.
Of course, nothing is confirmed as of yet, and neither Zero Zero nor Snap has returned requests for comment. Still, such an acquisition would make plenty of sense for Snap — the New York Times previously reported that Snap had investigated developing its own drones, though it now appears that the company would rather turn to outside help.
Snap is certainly feeling the pressure to deliver more promising news to its investors, as the news of the potential Zero Zero acquisition was announced on the same day that Snap’s shares on Wall Street hit a record low. On Wednesday, shares were trading at $13.10, representing a 23-percent decline from the opening price when the company went public in March.