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Why Snap Should Tap Apple or Tencent for Cash

Snap built a business on messages that disappear. But to keep the business going it needs to make sure its cash doesn’t.

The company burned through $1.1 billion in the last five quarters, just on running its business (it spent more cash on acquisitions). At that rate, and with just $1.8 billion left, Snap will likely need to raise more money in the next 18 months. In a little-noticed securities filing on May 1, the company said it may try to raise money by selling shares or debt. It was a standard filing and doesn’t mean Snap is looking to raise money anytime soon. Even so, the filing was a reminder of Snap’s cash needs.