Posted April 11, 2019 06:10:20Google, the video ad company that dominates the advertising market, has acquired a majority stake in Snapchat, a video-sharing app that’s gaining traction with millennials.
The acquisition is the latest in a string of deals Google has made in recent months that has helped its online video platform gain traction among teens.
Google also bought video hosting company Vidyo for $1.3 billion in July and a rival video sharing service, Vimeo, for $3 billion last year.
The deal with Snapchat was announced Tuesday, according to a tweet from a company spokesperson.
Google has been expanding its video advertising operations in the past year, with the acquisition of video hosting firm Vidyo.
The announcement came as Snapchat CEO Evan Spiegel spoke at a conference hosted by the Wall Street Journal, in which he said the app has already seen an increase in ad revenue.
“We see an increase of about 100 percent year-over-year,” he said.
“It’s going to be amazing,” Spiegel added.
Google has long struggled to grow its video ad business, largely because of competition from YouTube and Facebook, which have both grown their own video platforms.
Google acquired Snapchat in June, but the deal fell through amid competition from Facebook, Snapchat’s parent company.
Snapchat is now owned by Facebook, with Snapchat CEO and founder Evan Spiegel serving as chief executive officer.