The technology ecosystem sees yet another acquisition – Snapchat acquires the Mobli Geofilters patent from Israeli entrepreneur Moshe Hogeg for $7.7 million.
What is Mobli Geofilters?
Mobli Geofilters is a photo filters patent application made by Mobli and buzz going around is that Snapchat made the acquisition to stay ahead of its competition. Reports from TechCrunch shows that the acquisition was made to protect Snapchat app primary feature – Geofilters.
Mobli was a social mobile photo app and stood in competition to Instagram. However, in 2016, they filed for bankruptcy, but in 2012, Hogeg and his team had filed for patenting Geofilters, and since it is the main feature for Snapchat, they acquired it to kerb competition from other social giants and protected its primary revenue-generating system.
Out of the estimated $400 million that Snapchat earns, around $360 million comes from selling the geo-based photo filters to advertisers. If another multinational had acquired the patent, Snapchat’s primary revenue system would have been destroyed.
Post the acquisition, Mobli sent a letter to its shareholders announcing that the $7.7 million purchase is by far the highest amount ever paid for a patent in the Israeli tech ecosystem. This information was quoted and obtained by TechCrunch.
A press statement about the deal was not released by Snapchat and Mobli.