The stock of Snap Inc (NYSE:SNAP) closed at $15.15 losing 1.43% in yesterday’s trading session. The central purpose for the establishment of any particular business anywhere in the world is to be able to make money. CNN, which is under Time Warner Inc (NYSE:TWX) after realizing that there was nothing in there for it in the deal resolved to stop producing its daily show on Snap Inc’s Snapchat app, called the “The Update.”
It was back in August when CNN took to streaming the daily show which featured about five news stories in each episode from around the globe and it hoped that it would succeed in its efforts to woo a large number of the younger viewers. The fact that things didn’t work out has been a major disappointment on the part of a company that has over the years taken well-calculated moves in all the deals it has been striking. An executive working with the company during an interview said that it was a deal gone sour but the best thing was that they had realized that before wasting much time on it.
Originally, CNN had been an original content partner for Discover which happens to be a Snapchat feature that was unveiled at the start of 2015 and it went quite a long way in helping users watch stories for a wide range of publishers.
The official said that it was not the end of the two business gurus working together. It was a mutual decision to hit the pause so that they would engage in the exploration of the best opportunities for undertaking the move. Reports indicated that the shares for Snap went down by about 1.5 percent at $15.13 in morning trading.
Snapchat is a company widely known fort the kind of messaging that has the chats disappear in a matter of seconds from the moment they are read. However, it has been facing rather stiff competition from rivals thus sparking great need to look for better business strategies.
An analyst opined, “The Company did what was right because profit making is the goal of any company.”