Snapchat is buying SnapChat, the social video company that’s been struggling to stay relevant.
Snap, which announced the acquisition on Monday, said the two companies will combine their business operations, which will help them grow faster and have more opportunities to compete in the mobile space.
Snapchat will also retain its stake in Ghost Eyes and “will be a strategic partner in developing and enhancing Snapchat Stories and other products,” the company said in a statement.
Snapchat said the acquisition would help it grow faster by enabling it to focus on new business opportunities, including product development, and “providing more strategic, deep strategic alliances to expand Snapchat’s reach into new areas of the digital world.”
Snapchat, which has struggled to stay afloat with SnapChat’s recent sales declines, said it has made “significant progress” in improving the app, adding that it “is investing heavily in the growth and growth of our business.”
It also said it’s been working closely with Snapchat to “develop and improve its messaging platform.”
“Snapchat has a long history of innovation in video,” Snap Chief Operating Officer Evan Spiegel said in the statement.
“It’s a natural fit to combine our two companies in this way, and we look forward to working together as we continue to grow our businesses.”
Snapchat shares rose more than 3% after the announcement.
SnapChat has been struggling in recent months.
The company has struggled with users who don’t like the app’s camera-sharing feature and with its ad-based messaging platform.
Snapchat has also faced a slew of legal and privacy issues in recent years.
Snapchat launched in 2009, shortly after Snapchat first launched.
Today, the company has more than 2 billion users, according to its most recent figures.
But Snapchat has struggled in recent quarters.
Snapchat reported an $8.5 billion loss for the fourth quarter of 2017, and said it had $2.7 billion in net loss in the same quarter last year.
Snapchat is also battling a series of privacy and legal controversies that have caused the app to lose users.
Last year, the app was fined $1.1 billion by the Federal Trade Commission and has been forced to shut down for months.
Earlier this year, Snapchat announced that it would be ending its $1 billion buyout of the company.
Snapchat also said that the acquisition was subject to regulatory approvals and a $3.5 million valuation that the company will need to complete to complete the transaction.
The acquisition will add to Snap’s $1bn valuation and increase its revenue to $5.3 billion this year from $4.6 billion in 2017, the companies said in their statement.
In the meantime, the acquisition will enable Snapchat to expand its reach into video, a space where it has struggled for years.
The app recently launched its first video game, a mobile game called Ghost, that was free for Snapchat users to download.
In addition, Snapchat is expanding its digital video service to include video ads on Snapchat Stories, Snapchat’s social video app.
Snapchat recently launched a new mobile video app, SnapChat Live.