There’s no longer any doubt that Facebook is gunning for Snap, relentlessly copying many of its features. And while the evidence that Snap’s growth has been directly affected by Instagram is still anecdotal—even with internal studies—the threat to its current business model is real. Yet Snap CEO Evan Spiegel's mantra is keep to the current course. Or at least get better at it.
That no longer seems tenable. The growth prospects for Snap’s core revenue products are imperiled. With that in mind, the two most viable options are to diversify the business in the near term—or to sell. There are a number of potential suitors for the company, with Walt Disney Co being perhaps the most interesting possibility.