Snapchat tipped in acquisition of Bitstrips

Brittany A. Roston - Mar 25, 2016
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Snapchat tipped in acquisition of Bitstrips

If you thought the Bitstrips fad had passed, think again. Sources have cropped up claiming the Toronto company has been acquired by Snapchat, the digital playground for millennials. No official announcement has been made and as such all figures are rumors — the company is said to have paid $100 million for Bitstrips, doing so using a mixture of stock and cash.

Depending on how old you are, you know Bitstrips as either the source of those annoying personal comic strips that used to dot your Facebook newsfeed, or as the company behind the “Bitmoji” app for creating an avatar emoji. Bitstrips first came about back in 2007, and only shifted its focus from comics to Bitmoji in 2014.

What Snapchat plans to do with the company isn’t clear. Bitmoji are interesting enough, being cartoon avatars one creates to resemble their own look, but their usefulness on the platform isn’t readily discernible. Bitstrips itself has never been wildly profitable, at least as far as tech companies are concerned.

Snapchat, despite its early fumbles and misses, has become a highly popular social network, particularly with teens. The company has tested various ways to bring in cash, including features like “lenses” that users can buy, as well as custom geofilters and more. Snapchat has also teamed with various agencies and organizations, the most recent example of which is its partnership with Major League Baseball.

SOURCE: Fortune