Snapchat has released a statement after they reportedly lost $800m in market value after Rihanna blasted them for an offensive ad that referenced her physical assault from Chris Brown.
The company shares also dropped 3.6% to close at $17.20 right after the Pop star’s clapped back at Snapchat for running the offensive advert that asked its users if they would rather “slap Rihanna” or “punch Chris Brown”.
In the statement issued to CNN, the Social Media Network called the ad “disgusting” and said they are looking into the controversial case.
“We are investigating how that happened so that we can make sure it never happens again,” the company said.
Daniel Ives, chief strategy officer and head of technology research at GBH Insights, told CNN that it’s a big challenge for Snap.
“Social media platforms continue to have troubles with catching all offensive ads and content as we have seen from the likes of Facebook and Twitter,” Ives told CNN. “Snap dropped the ball on this ad.”
He added: “This is a make or break [year] for Snap and although we believe it’s heading in the right strategic direction, the Rihanna backlash and ad is another gut punch for this company to make sure they minimize the speed bumps ahead.”