Why Did Snap Inc (NYSE:SNAP) Buy This Tiny Drone Company?

Snap Inc

Snap Inc (NYSE:SNAP) has reportedly acquired Ctrl Me Robotics in a deal valued at less than $1 million.

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Ctrl Me Robotics is a small drone manufacturer based in Los Angeles, according to a report from BuzzFeed.

Snap is said to be building a drone or other types of hardware following the introduction of Spectacles, a sunglasses product with a built-in camera. So, Ctrl Me’s team could help the company in launching the new hardware.

Ctrl Me, which operates in Venice, California, was “in the process of winding down when it approached Snap about a possible deal,” BuzzFeed reported, citing a source with knowledge of the situation.

As part of the deal, Ctrl Me founder and drone entrepreneur Simon Saito will join Snap Inc (NYSE:SNAP). The deal also includes along Ctrl Me’s assets and equipment.

Ctrl Me was founded by Nielsen in 2013 to provide aerial footage capture tools to studios. The startup uses third-party drones and custom-built solutions.

Snap

Snap, which calls itself a “camera company,” was founded in 2011 by Evan Spiegel and Bobby Murphy. The company’s digital products include Snapchat, Spectacles, and the Bitmoji app. Snapchat, which lets users communicate through short videos and images known as a Snap, is the flagship product of Snap.

Snap went public earlier March. The camera company raised about $30 billion in market capitalization on the first day of trading.

Shares of Snap Inc (NYSE:SNAP) are down over 13% so far this year. During the last 30 days, the share price of the company’s stock has fallen 5.9%.

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