Snap close to acquiring Chinese drone maker Zero Zero Robotics: reports

Snapchat owner Snap Inc is negotiating to buy Chinese drone maker Zero Zero Robotics to boost its hardware push, according to media reports.

The deal, which was first reported by The Information, will be between $150 million to $200 million, TechCrunch reported citing a source.

Snap and Zero Zero Robotics have not responded to a request for comment.

Zero Zero Robotics makes a $500 foldable hovering drone that follows you and records video. If the acquisition goes through it would mark the latest move by Snap to double down on hardware after the launch of its video recording sunglasses called Spectacles.

The company, which went public in March to much excitement, has struggled to grow its user base amid stiff competition from Facebook’s copycat product Instagram Stories. Shares of the company closed at $13.10 on Tuesday, below the company’s $17 initial public offer price.

Snap will be hoping the purchase can help differentiate its product, boost users, and grow a new revenue stream beyond advertising.

Source: CNBC