Snapchat has been the source of some great controversy over its relatively short lifespan. The CEO was under some huge scrutiny when he turned down multiple 3+ billion dollar buyout offers. Personally I thought that he should have sold it and tried to keep a little bit of equity so he could still have a say in his business. At the time of those offers Snapchat also had made 0 dollars in profits because they had not sold any advertisements. What Snapchat recently did in its latest update me and I could finally see how they could reach there really high profit goals that their IPO suggested. A few months ago Snapchat created a thing called snapcash where you can pay your friends through the snapchat app. I did not think that was going to be successful, but their newest update was (in my opinion) brilliant.
Snapchat is now a news source. It is not only for sending outrageous pictures to your friends. Credible news sources like ESPN and CNN are now working with Snapchat to publish 5-10 interesting news related articles/pieces a day. Tons of other companies are already doing this too. Some of the other companies that are participating in this are Comedy Central, Cosmopolitan, National Geographic, the Food Network, and several others. All of these articles are easily accessible on Snapchat under the "Discover" section of the app.
The great think of this new update is the revenue it will bring to the app. Snapchat and whatever company has editors producing content (CNN, etc.) will split the revenue from the advertisements they have 50/50. The fact that Snapchat is so hot right now and has billions of users makes those advertisement spots very valuable. I think with this change Snapchat will finally start to make a bunch of money and it will be an interesting thing to follow.
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