Listen to RFI News
Expand Player
 
Listen Download Podcast
  • Paris Live PM 14h00 - 15h00 GMT
    News bulletin 12/14 14h00 GMT
  • Paris Live PM 14h00 - 15h00 GMT
    News bulletin 12/13 14h00 GMT
  • Paris Live PM 14h00 - 15h00 GMT
    News bulletin 12/12 14h00 GMT
To take full advantage of multimedia content, you must have the Flash plugin installed in your browser. To connect, you need to enable cookies in your browser settings. For an optimal navigation, the RFI site is compatible with the following browsers: Internet Explorer 8 and above, Firefox 10 and +, Safari 3+, Chrome 17 and + etc.
Afp

Snapchat parent hands over data for US inquiry

By AFP
media Snap, the parent firm of the messaging app Snapchat, said it is cooperating with a US probe into whether it provided adequate information to investors ahead of a 2017 public offering AFP/File

Snapchat's parent company Snap said Wednesday US officials are looking into how forthright the company was with aspiring investors prior to its stock market debut last year.

Snap Inc. has been responding to subpoenas and request for information from the Department of Justice and Securities and Exchange Commission, a spokesperson said in response to an AFP inquiry.

The inquiries apparently stemmed from a class-action lawsuit filed against Snap by investors who contend the company didn't reveal how much of a competitive threat Snap faced from Facebook-owned Instagram.

"It is our understanding that these regulators are investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures," the Snap spokesperson said.

"While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram."

Snap disputed the lawsuit's claims, calling them "meritless," and said it would continue to cooperate with regulators.

Snap shares were down 4.1 percent to $6.44 in late afternoon trading on the New York Stock Exchange. Shares were priced at $17 for Snap's initial public offering in March of last year.

Snap came under selling pressure late last month after a quarterly report showing a loss of one million users even as it grew revenues and narrowed losses.

Analysts say Snapchat has become the most popular social network among teens and young adults, but user growth has stalled as Facebook and its Instagram platform introduce services similar to those of Snapchat, known for its disappearing messages.

Although Snapchat is best known for its smartphone messaging, it has also developed partnerships with numerous media outlets eager to reach its audience with news, video and other content.

Snap recently announced it was launching a new slate of original video shows under its own brand in the latest move to spark growth.

 
Sorry but the period of time connection to the operation is exceeded.