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Perplexity to pay Snap $400M to power search in Snapchat

1. Snap integrates Perplexity's AI search engine, enhancing user experience. 2. Perplexity will pay Snap $400 million in cash and equity. 3. Snap expects to generate revenue from this deal by 2026. 4. Snap's Q3 2025 results show a 10% revenue increase year-over-year. 5. Snapchat+ now boasts over 17 million subscribers, indicating growth potential.

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FAQ

Why Bullish?

The integration with Perplexity may attract more users and increase engagement, similar to past successful partnerships. However, revenue recognition begins in 2026, limiting immediate effects.

How important is it?

The $400 million deal and user base exposure are significant for Snap's future growth, enhancing its market position.

Why Long Term?

The financial benefits of the deal will be realized from 2026, supporting sustained user engagement and potential revenue.

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