The parent company of Snapchat hosted a New Year’s Eve party in Los Angeles that cost roughly $4 million, according to TMZ, even though the company’s economic wellbeing is dubious.
Snap Inc. flew in employees from all over the world to attend the lavish party, and CEO Evan Spiegel paid out of his own pocket to have famous pop star Drake perform, reports TMZ. The four million dollars allegedly went, at least partially, to renting out Microsoft Theater and almost every other venue or restaurant facing Microsoft Square, a prominent portion of L.A.
Snapchat allegedly obtained permits to host up to 5,000 guests, including in the area a large ice rink is usually situated, but was removed likely due to the company’s plans. Intricate pyrotechnics and a multi-story D.J. stage were also reportedly party of the festivities.
A reporter for The Daily Beast said that attendees of the party, as well as, and perhaps especially, employees, were not allowed to discuss the party, nor broadcast any of it on social media platforms. The company specifically blocked all Snaps (or posts, images, videos, etc.) coming from the larger area, according to the tech writer.
Despite the blocking attempts, pictures still naturally made their way to the internet through other means.
There is arguably some reason to celebrate for Snap as it finally went public by launching its highly-anticipated initial public offering earlier in the year. (RELATED: Name Mix-Up Causes Stocks To Surge For Lucky Company)
But Snap’s recent earnings reports have been lackluster, to say the least. It lacks a consistent and substantial user growth rate essentially required for a growing and successful social media company, according to a CNBC analysis. Snapchat, for example, only has around 128 million users on a daily basis, a figure that isn’t increasing very quickly or significantly, while Facebook-owned Instagram has more than 500 million users per day.
And potentially poor investments may not just be for party-throwing, as Snapchat reportedly has “hundreds of thousands” of its proprietary smartglasses left over, sitting idly in a warehouse.
Snapchat, however, has increased its value in recent years to become a $17 billion company, but recently posted a $561 million loss for the first three quarters of 2017.
Yahoo, which infamously spiraled downward in past months and years, decided to tone down its 2016 Christmas party after allegedly spending $7 million on the same event a year prior.
The more recent event was called the “Ultimate House Party,” in which the office space was transformed into a giant party venue with an apparent abundance of food and drink. While the party was still lavish in some respect, it was far less luxurious and costly than the previous one, partially due to the fact that it decided to use its own space, rather than renting out some.
The company, which is now part of the Verizon conglomerate, seemed to learn its lesson that throwing parties that exude wild success and manifest overflowing coffers is not best when the financial situation is not actually so bright. Yahoo’s struggles, though, were already developing for years and were almost certainly far more apparent at the time.
Snapchat did not respond to The Daily Caller News Foundation’s request for further details by time of publication.
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