Snapchat, a massaging app run by Snap Inc. that’s planning an initial public offering this year, chose London as the home of its international division, defying concerns about the economic impact of Britain’s withdrawal from the European Union, Reuters reported on Tuesday.
The company, which has 150 million daily users globally including 10 million of them in the UK who use the app daily, will book sales from Britain in countries where it has not set up a local office, Reuters reported, citing Claire Valoti, general manager of Snap Group in the UK.
“We believe in the UK creative industries,” the news service cited Valoti as saying. “The UK is where our advertising clients are, where more than 10 million daily Snapchatters are, and where we’ve already begun to hire talent.”
Snap joins a list of other US tech companies that have invested more in the UK since the June referendum, including Alphabet’s Google (GOOGL), Facebook (FB) and Amazon (AMZN), according to the report.
Snap, though, is not following their accounting practises. Many other tech companies and other large multinationals including Alphabet’s Google and Facebook have caused a public uproar and garnered regulatory and parliamentary scrutiny for routing international revenue through countries such as Ireland and Luxembourg, where corporate tax rates are lower than in the UK.