Home
Apps
Apps News
Snapchat's Parent Company to Spend $1 Billion on Amazon Web Services

Snapchat's Parent Company to Spend $1 Billion on Amazon Web Services 4e3n35

By Reuters | Updated: 10 February 2017 10:25 IST

ment

Snap Inc, owner of the popular Amazon.com's cloud services, in addition to the $2 billion cloud contract it already has with Google. 5p116t

Snap may eventually invest in building its own infrastructure, it said on Thursday, in an amendment to a filing related to its planned stock market debut in March.

The company, which filed its IPO registration statement a week earlier, is looking to raise $3 billion.

Snap could be valued at between $20 billion and $25 billion, giving the company the biggest valuation in a US technology IPO since Facebook Inc.

10 Things We Learnt About Snapchat From Snap's S-1 SEC Filing

Venice, California-based Snap has said it relies on Google Cloud to host the vast majority of its computing, storage and bandwidth.

Snap also added details in the filing er habits outside North America and Europe. Slower and expensive cellular networks outside these two regions have limited the use of its app, which requires high bandwidth, the company said.

This means s from these countries tend to be more interested in consuming content than creating it, making them easier targets for Snap's competitors, the company said.

Snapchat, which started in 2012 as a free mobile app that allows s to send photos that vanish within seconds, competes with Facebook for s.

"Fewer Snaps and Chats sent means fewer notifications inviting friends back into the application and therefore lower and more sporadic daily use," Snap said in the filing.

Snapchat has more than 100 million active s, about 60 percent of whom are aged 13 to 24, making it an attractive way for rs to reach millennials.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.