Snap Names London Its International Headquarters

Snap has significantly expanded its presence in London, growing from 6 to 75 employees in a year, and establishing a tax hub there, which is unusual compared to other tech companies favoring Ireland and Luxembourg for lower tax rates. This move may be influenced by regulatory scrutiny on tax havens. The UK offers a favorable tax environment, especially post-Brexit, making it an attractive location. Snap's strategic positioning in London aligns with its advertising business, and the expansion is seen as a precursor to its upcoming IPO, highlighting its global growth potential, especially in Europe.

Why is Snapchat's decision to make London its tax hub considered unusual?

• Because London is not known for its advertising industry.

• Because Snapchat has no users in London.

• Because London is not a major tech hub.

• Because London has higher tax rates than Ireland and Luxembourg.

What is one reason Snapchat might be attracted to the UK despite Brexit uncertainties?

• The UK offers better weather for business.

• The UK is reducing its tax rates.

• The UK has a larger population than the US.

• The UK has a large Snapchat user base.

Why is London a logical hub for Snapchat?

• It is the headquarters of the global advertising industry.

• It has the lowest tax rates in Europe.

• It is the birthplace of Snapchat.

• It has the largest number of Snapchat users in the world.

What is a key part of Evan Spiegel's pitch for Snapchat's IPO?

• Snapchat's plan to reduce its workforce.

• Snapchat's potential for global growth.

• Snapchat's decision to move its headquarters to Asia.

• Snapchat's new features for older users.

What must Snapchat demonstrate to justify its high valuation?

• A partnership with a major tech company.

• A growing user base in Europe.

• A decrease in operational costs.

• A new line of hardware products.