Prof G Markets: Twitter’s Rebrand to X, Mattel’s IP Playbook, and What’s Next for Snap

Acquisition Scenarios

Scott Galloway explores potential acquisition scenarios for Snap, highlighting Disney and Apple as possible suitors. He suggests Disney could leverage Snap's 400 million younger users to distribute its content and market its properties, aligning well with Disney's brand and growth strategy. Apple, despite its reluctance for large acquisitions, could also benefit from Snap's user base, but cultural differences may pose challenges.

They could acquire Snap and pay for it with just change. Change they find in their couch.

--- Scott Galloway

Ultimately, Scott predicts that Snap will undergo significant changes within the next year, driven by its subscale status and the need for strategic alignment with a larger platform 1 2.

   

Ad Market Struggles

Snapchat faces significant challenges in the digital advertising market, struggling to compete with giants like Google and Meta. Despite innovative products and a strong management team, Snap's subscale status limits its ability to attract digital ad spend, leading to a 14% stock decline following weak quarterly sales.

It's a great company and it just can't compete with these monopolies.

--- Scott Galloway

Scott argues that Snap's predicament exemplifies the need to break up big tech to level the playing field. He notes that while Snap's daily active users have grown, its financial performance remains heavily dependent on a shrinking digital marketing budget 3.