Fidelity Writes Down Snapchat Stake by 25%

I don’t understand why they’d do such a thing. I mean, isn’t Snapchat the coolest thing to hit idiot teenagers since acne cream?

Wut, the co izn’t worth $20 billion ne moar bcuz they don’t make ne revenews?

Fidelity, a fund manager which invested in the creator of the mobile app for sending disappearing photos and videos, marked down its stake in Snapchat by 25 percent to $34.5 million in the third quarter, according to data from Morningstar on Tuesday. Snapchat had raised cash from investors at a $16 billi o n valuation earlier this year, a person familiar with the matter said in May. The Financial Times earlier reported the writedown.

Fidelity is reassessing its stake in Snapchat amid increasing anxiety in Silicon Valley that some privately funded companies may not live up to their lofty valuations. Other startups, including Dropbox Inc., have had their values adjusted downward by mutual funds in recent months. Last week, Square Inc. said it was seeking a market capitalization for its initial public offering that was significantly lower than its private-company valuation.

The era of the unicorn is over. Fuck the millennials and to hell with privately held crap, overhyped by Frederick Wilson. Very soon, programmers will be in the streets with tinned cups, begging for stock options.