Users are jumping ship to Instagram. Once they duplicated the functionality it was the nail in the coffin for snap. If I had a ton of cash lying around I’d short the stock to zero. Insta was Facebooks greatest acquisition.
Bounded upside, infinite downside. I'm sure it's more complicated but what am I missing?
In this case, the parent would buy a put option, which would pay out only if, and proportionally to the amount that, the stock is lower than some predefined price (usually the present price with a small delta).