Snap jumps as Instagram pulls plug on standalone messaging app

(Adds company response, updates stock movement)

** Snapchat parent Snap Inc shares jump over 8% to $11.53

** Facebook Inc says it will shut down the standalone Instagram direct messaging application called "Direct", according to a report https://techcrunch.com/2019/05/16/rip-instagram-direct-app from TechCrunch

** Report says Facebook in the coming month will shut down "Direct", which it was testing to rival Snapchat on iOS and Android

** An Instagram spokesperson says, "We're rolling back the test of the standalone Direct app"

** The move is a part of FB's strategy to simplify and consolidate most of its apps on to a single platform

** Instagram was not immediately available for a Reuters' request for comment

** According to TechCrunch, Facebook will channel all developments and activity into the direct messaging feature of the main Instagram app

** SNAP shares have more than doubled this year, while Facebook has gained ~43% YTD (Reporting by Shreyashi Sanyal in Bengaluru)

First Published: 2019-05-16 08:48:17
Updated 2019-05-16 21:16:30


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