Podcasts > The Diary Of A CEO with Steven Bartlett > Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

By Steven Bartlett

In this episode of The Diary Of A CEO, Snapchat founder Evan Spiegel sits down with Steven Bartlett to share the story behind Snapchat's meteoric rise and $130 billion valuation. Spiegel reflects on his early entrepreneurial experiences, including a failed project that taught him the value of rapidly prototyping ideas. He recounts the origins of Snapchat, borne from a desire to facilitate ephemeral visual communication, and his decision to turn down Facebook's $3 billion buyout offer in pursuit of his grander vision.

The Snapchat CEO also dives into his principles for cultivating a successful company culture and staying ahead of tech giants through constant innovation. Looking to the future, Spiegel weighs in on the impact of emerging technologies like AI, content moderation's role in shaping social platforms, and the importance of work-life balance for leaders.

Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

1-Page Summary

Spiegel's Early Life and Development as an Entrepreneur

Evan Spiegel was an introverted yet imaginative and contrarian child. He enjoyed building things like computers and even a pretend hotel, fostering his creativity. Spiegel recalls how working with Bobby Murphy on their failed "Future Freshmen" project taught him the value of rapidly prototyping ideas and getting early user feedback.

The Founding and Growth of Snapchat

Inspired by a friend's desire to send disappearing photos, Spiegel and Murphy saw an opportunity in visual communication. They designed Snapchat (initially Picaboo) around fun, ephemeral photo-sharing rather than security. Snapchat grew rapidly through word-of-mouth, amassing millions of users. Despite Facebook's $3 billion buyout offer, Spiegel opted for Snapchat's independence, driven by his vision.

Spiegel's Principles For Building a Successful Company

Spiegel prioritizes cultivating a kind, smart, creative culture at Snapchat through practices like council sessions. He values maintaining focus on Snapchat's core mission by cutting extraneous features. Spiegel believes building complex platforms insulated from replication, like Snapchat's augmented reality capabilities, is key to competing with tech giants.

Impact of Technology and AI On the Future

Spiegel is optimistic about AI augmenting human intelligence and creativity while cautioning against potential societal downsides. He comments on Meta's changes to content moderation, urging platforms to clarify their values and approach to free speech.

Spiegel's Personal Life and Work-Life Balance

Initially consumed by long work hours, Spiegel has found balance through family time with his wife and sons. He values self-awareness, humility, and actively seeking feedback to grow as Snapchat's leader.

1-Page Summary

Additional Materials

Clarifications

  • Evan Spiegel's early life was marked by his introverted yet imaginative nature, where he enjoyed building things like computers and engaging in creative projects. His experience working on a failed project with Bobby Murphy taught him the importance of quickly testing ideas and gathering feedback. These early experiences influenced his entrepreneurial journey and approach to innovation.
  • Snapchat, initially known as Picaboo, was founded by Evan Spiegel and Bobby Murphy. The app was designed for ephemeral photo-sharing, allowing users to send disappearing photos. Over time, Snapchat evolved to include various features like messaging, stories, and augmented reality filters, becoming a popular platform for visual communication. The name change from Picaboo to Snapchat reflected the broader scope of the app beyond just photo-sharing, emphasizing its focus on quick, visual interactions.
  • Council sessions at Snapchat are structured meetings where employees from different departments come together to discuss ideas, provide feedback, and make decisions. These sessions promote collaboration, transparency, and alignment within the company. They help ensure that everyone's voice is heard and contribute to fostering a culture of open communication and innovation at Snapchat. Council sessions play a crucial role in shaping the direction and strategies of the company by leveraging the diverse perspectives and expertise of the team.
  • Snapchat's augmented reality capabilities involve overlaying digital elements like filters, animations, and interactive effects onto real-world scenes captured through the app's camera. These AR features enhance user experiences by adding playful and engaging elements to photos and videos. Snapchat's early adoption and innovation in AR have differentiated it from competitors, offering users unique and interactive ways to express themselves creatively. The integration of AR technology has been a key factor in Snapchat's success, attracting and retaining users through its innovative and immersive features.
  • Evan Spiegel, the co-founder of Snapchat, initially struggled with work-life balance due to long work hours but has since prioritized family time with his wife and sons. He emphasizes the importance of self-awareness, humility, and actively seeking feedback to improve as a leader both personally and professionally. This shift in focus towards family and personal growth has helped him find a better balance in his life while leading Snapchat.

Counterarguments

  • While rapid prototyping and user feedback are valuable, they are not the only factors in a startup's success; market timing, funding, and luck also play significant roles.
  • The growth of Snapchat through word-of-mouth suggests a strong product-market fit, but it also raises questions about the sustainability of growth without diversified marketing strategies.
  • Prioritizing a kind, smart, creative culture is commendable, but it can be challenging to maintain as a company scales and faces the pressures of profitability and competition.
  • Maintaining focus on a core mission is important, but it can also lead to missed opportunities for diversification and innovation in other areas.
  • Building complex platforms to compete with tech giants is a sound strategy, but it also requires significant resources and can lead to a focus on features over user experience.
  • Optimism about AI is warranted, but it should be balanced with proactive measures to address job displacement and privacy concerns.
  • Cautioning against the societal downsides of AI is important, but it's also necessary to actively participate in shaping the policies and ethical frameworks that govern AI development and use.
  • Clarifying values and approaches to free speech is crucial, but it can be difficult to implement consistently across global platforms with diverse user bases and legal environments.
  • Finding work-life balance is essential, but the demands of leading a major tech company can sometimes make this balance difficult to achieve, potentially impacting decision-making and leadership effectiveness.
  • Valuing self-awareness and feedback is key to personal growth, but leaders must also be prepared to make unpopular decisions that may not align with the feedback they receive.

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

Spiegel's Early Life and Development as an Entrepreneur

Evan Spiegel, the acclaimed entrepreneur and co-founder of Snapchat, reflects on his early life and the formative experiences that shaped his entrepreneurial spirit.

Spiegel's Formative Experiences and Interests as a Child

Spiegel Was an Introverted Child Who Built and Created Things, Like a Computer and a Fake Hotel

Spiegel describes himself as a naturally introverted child who had confidence in his ideas and was willing to explore those that were not popular. He would often take a stand, which was reinforced by his contrarian nature, a quality his father vividly recalls. During his childhood, Spiegel exhibited a deep interest in construction and creation; not only did he build a computer, but he also crafted a pretend hotel for his parents in their living room. His parents encouraged his imagination by forbidding television and instead providing him with books, which helped him cultivate a fertile imagination and gave him the time to pursue creative projects.

Spiegel fondly remembers his early exposure to computers, pinpointing his initial fascination to kindergarten with an early Macintosh and later constructing his own computer in sixth grade. This experience of building his own computer was empowering and led him to ponder what other complexities he could unravel and construct.

Spiegel's Early Entrepreneurial Endeavors and Lessons Learned

Spiegel and Bobby Collaborated On Social Media Ideas During University; Their Early Project "Future Freshmen" Didn't Succeed

During his university years, Spiegel collaborated with Bobby Murphy on various social media ideas. One of their earlier projects, "Future Freshmen," was an attempt they hoped would garner success. However, Spiegel’s time studying abroad in Cape Town gave him the perspective he needed to understand the flaws in the project, mainly that it would be incredibly challenging to succeed with a project he wasn't passionate about.

Lesson Fr ...

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Spiegel's Early Life and Development as an Entrepreneur

Additional Materials

Actionables

  • Foster your creativity by setting up a 'no screen' day once a week, where you only read books or engage in hands-on activities. This mirrors the environment that encouraged Evan Spiegel's imagination, allowing you to explore your own creative thoughts without the distraction of television or the internet.
  • Build a basic understanding of technology by assembling a DIY computer kit. This activity can give you a sense of empowerment and a deeper appreciation for the technology you use daily, much like Spiegel experienced when he built his own computer.
  • Implement a 'feedback Friday' with friends or c ...

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

The Founding and Growth of Snapchat

Snapchat's story began with a simple desire to send disappearing photos and has grown into a social media giant with millions of users worldwide.

The Origin of the Snapchat Idea

Inspired by a friend's regret over a photo he wished would disappear, co-founders Evan Spiegel and Reggie considered the untapped potential of visual communication.

Inspired by a Friend's Wish to Send Disappearing Photos, Spiegel and His Co-founder Saw a New Opportunity in Visual Communication

In the early days, Snapchat, then called Picaboo, focused on disappearing messages, but founders soon learned that people desired to communicate through pictures. Evan Spiegel recounts a moment following a conversation with his friend Reggie about photos disappearing, which sowed the seeds for Snapchat. Over the following school year, he realized the app's potential. Spiegel and his co-founder, Bobby Murphy, worked on the service at Spiegel's dad's house during the summer, incorporating user feedback and renaming it Snapchat. Evan Spiegel speaks about Snapchat's revolutionary use of photos in communication, explaining how the app showed that pictures could be instant communication tools rather than just a means of saving memories. Initially, they faced similar apps focused on security, but Spiegel and Murphy centered Snapchat around fun, even designing it to notify users when screenshots were taken.

Snapchat's Early Growth and Challenges

Snapchat quickly increased its number of users, but the company had to contend with doubts about its long-term viability.

Snapchat Rapidly Grew To Millions of Users but Faced Investor Skepticism About Its Viability

Snapchat's launch in September 2011 led to immediate growth, evident in the increasing snap counter Spiegel refreshed. They thoughtfully implemented features like caption tools, greatly enhancing user communication. Spiegel describes how Snapchat went down for three days, and user fidelity became clear when they returned en masse upon service restoration. Organic growth through word-of-mouth played a significant role in Snapchat's burgeoning user base. Spiegel mentions the cohesive early engineering team and how their hiring choices impacted growth. Over two challenging years, they completely rebuilt the ad platform and shifted their market approach to support advertisers and creators better. By 2014, 40% of US adults used Snapchat daily, by 2015, they reached 75 million monthly users, and Spiegel became ...

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The Founding and Growth of Snapchat

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Counterarguments

  • While Snapchat did introduce the concept of disappearing photos, it's worth noting that the idea of ephemeral content wasn't entirely new and has been seen in various forms of digital communication.
  • The claim that Snapchat revolutionized the use of photos in communication could be contested by pointing out that other platforms like Instagram also played a significant role in the way photos are used socially.
  • The rapid growth of Snapchat's user base is impressive, but it's important to consider that other social media platforms have also experienced rapid growth, suggesting that the market for social media was ripe for expansion at the time.
  • Investor skepticism about Snapchat's long-term viability was not unfounded, as many tech startups struggle to monetize and sustain growth in the long term.
  • The decision to turn down Facebook's acquisition offer can be seen as a bold move, but it also carried significant risk, and only time could tell if it was the right decision strategically and financially.
  • The focus on imperfection and enjoyable communication as a company ethos is commendable, but it's also important to acknowledge that user privacy concerns and the potential for misuse of the platform are valid criticisms that the company has had to address.
  • The narrative of organic growth through word-of-mouth is compelling, but it's likely that strategic marketing and the network effects inherent in social media also played a significant role in Snapchat's growth.
  • The rebuilding of the ad platform and shift in market approach to better support advertisers and creators is a positive development, but it also suggests that the initi ...

Actionables

  • Embrace the concept of impermanence in your digital communications by setting up time-limited challenges with friends where you share photos or messages that disappear after a short period. This can be done through various apps that offer self-destructing message features, fostering a sense of spontaneity and presence in your interactions.
  • Create a personal feedback loop for any project or hobby by sharing progress with a close group of friends or family and asking for their honest input. This mirrors the approach of incorporating user feedback and can be facilitated through simple group chats or shared albums, allowing you to iterate and improve based on the responses you receive.
  • Cultivate a habit of celebrating small, imperfect moments by captur ...

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

Spiegel's Principles For Building a Successful Company

Evan Spiegel, the CEO of Snapchat, shares his insights on what it takes to create and sustain a successful company. His principles revolve around nurturing a creative culture, maintaining a focused approach to innovation, and leveraging the potential of platforms and ecosystems.

Cultivating a Creative and Collaborative Culture

Spiegel Prioritizes Kindness, Smart Thinking, and Creativity at Snapchat, With Practices Like Weekly "Council" Sessions to Enhance Communication

Spiegel emphasizes the importance of company culture, believing that how much one cares about the business, team, and customer is a large predictor of success. He values specific behaviors tied to performance, aiming to give employees a clear framework. These values are kind, smart, and creative. Kindness is integral—it makes it comfortable for team members to share new ideas and ensures support rather than ridicule.

He shares how Snap has faced challenges, particularly as the company scaled from 20 to 2,000 people, and discusses actions taken to maintain a culture that reflects the company’s values. Weekly "council" sessions at Snapchat, adopted from Spiegel's middle school experience, encourage team members to connect and communicate on a personal level.

The design team at Snapchat is kept purposefully small and flat structured. New hires are encouraged to make and present something from the first day, which helps overcome the fear of failure. Spiegel highlights a belief that good ideas come from having lots of ideas, acknowledging that most may not work, but it is the discovery of the ones that do that counts.

Balancing Innovation and Focus

Spiegel Cuts Snapchat Features and Projects to Focus On Core Mission and Long-Term Strategy

Spiegel discusses the importance of focusing on the right things and ensuring that great ideas are surfaced and built upon. He reflects on hiring mistakes and the need for adaptability in employees. Despite the challenge of investing in long-term innovation, Snapchat chose to keep investing at a high rate even during a period of higher interest rates.

Snapchat has made hard decisions, such as shutting down mini games on the platform, to stay focused on the core community and what customers truly want. While not explicit in the content provided, these actions hint at Spiegel's belief in ...

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Spiegel's Principles For Building a Successful Company

Additional Materials

Clarifications

  • The "Weekly 'council' sessions" at Snapchat are regular meetings where team members gather to connect and communicate on a personal level. These sessions are aimed at enhancing communication, fostering collaboration, and strengthening relationships within the company. They provide a platform for employees to share ideas, discuss challenges, and align on goals in a more informal and interactive setting. The practice is inspired by Evan Spiegel's middle school experience and reflects his emphasis on nurturing a creative and collaborative culture at Snapchat.
  • Tech partnerships involve collaborations between technology companies to leverage each other's strengths, resources, and expertise. In competitive dynamics, companies form strategic alliances to enhance their market position, innovate faster, access new markets, or combine technologies for mutual benefit. These partnerships can involve sharing intellectual property, joint product development, or co-marketing efforts to gain a competitive edge in the industry. The dynamics of these partnerships can vary widely based on the goals, terms, and the competitive landscape within the tech industry.
  • Snap's journey to independence signifies t ...

Counterarguments

  • While kindness is important, excessive focus on being kind can sometimes lead to a lack of critical feedback, which is essential for growth and improvement.
  • Weekly "council" sessions, while beneficial for communication, may not be scalable or effective in all company cultures or sizes.
  • A small and flat design team structure might limit career progression opportunities and could lead to challenges in managing a growing company.
  • Encouraging new hires to present ideas from day one could be overwhelming for some individuals and might not yield quality input without proper context or understanding of the company.
  • The concept that good ideas come from having lots of ideas can lead to a lack of focus and resource wastage if not managed properly.
  • Cutting features and projects to focus on core missions is strategic, but it risks alienating users who valued those features and could potentially limit innovation.
  • Focusing solely on the core community might overlook opportunities to expand into new markets or demographics.
  • Building complex platforms to compete with larger tech giants is a sound strategy, but it can also result in overcomplication and user confusion.
  • A sophisticated ecosystem like augmented reality technologies requires signif ...

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

Impact of Technology and AI On the Future

Evan Spiegel delves into discussions on the potential of AI for learning and creativity, the societal impacts of new technologies, and navigating the evolving social media landscape, touching upon his company's and others' roles in these areas.

Spiegel's Optimism About AI For Learning and Creativity

Spiegel is optimistic about AI's potential to augment human intelligence and creativity.

Spiegel Views AI As a Tool to Augment Human Intelligence and Creativity, Excited About Its Educational and Creative Applications

He shares his enthusiasm for AI as a tool for discovery and learning, seeing it as a valuable educational aid that could help improve people's question-asking skills, a critical component in the learning process. Spiegel reflects on AI's role in the gradual and then rapid pace of technological change, as seen with developments like ChatGPT. He suggests that AI facilitates learning and creativity, leading to the invention of new technology pieces that could accelerate the timeline towards achieving visions like augmented reality glasses. Moreover, Spiegel finds AI a useful thought partner for creative processes, providing quick options and ideas for writing and brainstorming.

Concerns About the Societal Impacts of New Technologies

However, Spiegel also notes the potential unintended negative impacts of social media and AI, urging a thoughtful approach to their development and use.

Spiegel Sees Potential Unintended Negative Impacts of Social Media and AI; Stresses Thoughtful Consideration

Acknowledging the importance of feedback in developing new technologies, Spiegel expresses frustration with companies repurposing Snapchat inventions, leading to products that make people feel bad about themselves. Citing studies that found no negative mental health implications from using Snapchat, he highlights Snapchat's designed focus on well-being and fostering relationships. Spiegel recognizes the possible unforeseen negative effects of adopting new technologies like AI but emphasizes the importance of navigating such changes thoughtfully, governed by human adoption and adaptation, and stresses considering how people interact with AI in their lives and work.

Given Meta's recent changes to mo ...

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Impact of Technology and AI On the Future

Additional Materials

Clarifications

  • ChatGPT is an artificial intelligence chatbot developed by OpenAI in 2022. It uses the GPT-4o large language model to generate human-like conversational responses. ChatGPT allows users to guide conversations towards specific lengths, styles, and topics. It has raised concerns about potential impacts on human intelligence, plagiarism, and misinformation.
  • Meta, in this context, is a reference to Meta Platforms, Inc., formerly known as Facebook, Inc. It is a multinational technology conglomerate founded by Mark Zuckerberg. The company owns various social media platforms, including Facebook, Instagram, WhatsApp, and Oculus. Meta is involved in developing technologies related to virtual reality, augmented reality, and artificial intelligence.
  • The First Amendment of the U.S. Constitution protects freedom of speech from government interference. However, this prot ...

Counterarguments

  • AI's potential to augment human intelligence and creativity might be overestimated, as it could also lead to dependency on technology and a decline in independent critical thinking skills.
  • While AI can assist in discovery and learning, it may also homogenize creativity by pushing users towards common patterns and solutions suggested by algorithms.
  • Improving question-asking skills with AI might inadvertently lead to a lack of depth in understanding if the technology is relied upon too heavily for answers.
  • The rapid acceleration of technological advancements due to AI could exacerbate the digital divide, leaving some communities behind.
  • AI as a thought partner could potentially stifle human creativity if individuals become too reliant on AI-generated ideas and options.
  • The negative impacts of social media and AI might be more significant than acknowledged, affecting mental health and societal structures in ways not yet fully understood.
  • The assertion that Snapchat has no negative mental health implications could be challenged by different studies or future research showing otherwise.
  • Thoughtful consideration in the development and use of new technologies is subjective and may not always lead to universally beneficial outcomes.
  • Balancing expression and safety on social media platforms is complex, and there may be disagreements on what constitutes a comfortable space for self-expression.
  • The right of private companies to decide their platform content can lead to censorship and a lack of ...

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Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!

Spiegel's Personal Life and Work-Life Balance

Evan Spiegel, the co-founder and CEO of Snap Inc., has navigated the complex territory of balancing a demanding career with family life and personal growth. His reflections reveal a continual effort to align his work commitments with his roles as a husband and father, while developing the self-awareness and humility necessary to lead a growing company.

Balancing Family and Career

Spiegel Balanced Work-Life, Initially Working Long Hours but Ultimately Finding Time for His Wife and Four Sons

Spiegel has not always had the balance right—as evidenced by long workdays that started before his children woke up and ended after they were asleep. However, the COVID-19 pandemic brought a shift, giving him the opportunity to cultivate an open-door policy in his home office and questioning the need to return to the office post-pandemic. Despite the humorous moments this provided, such as his son entering with two Oreos and no clothes, it led to a deeper reflection on the importance of family time.

In 2014, Spiegel met his wife, a turning point in his life which provided stability and significant support. His wife, a business owner herself, had a profound understanding of entrepreneurial challenges. Both were committed to working hard from the beginning, creating an expectation of hard work to support their business and family goals. Together, they have woven this understanding into the fabric of their relationship.

Spiegel also acknowledges the importance of dedicating specific times for his family, such as implementing "Sunday Family Day" to foster connection and engagement—a contrast from earlier when he might come home to sleeping children after a day's work. Moreover, he recognizes the importance of celebrating life's great moments like his child's accomplishment in a math test amidst day-to-day business concerns.

Developing Self-Awareness and Humility As a Leader

Spiegel Values Self-Awareness and Feedback as Snapchat Grows and His Role Evolves

Recognizing his early challenge of being the youngest in the room, Spiegel taps into humility and asking questions as strategic advantages. He understands that he is not the best in all areas of the business like HR, legal, or finance, but emphasizes the significance of focusing on his strengths and surrounding himself with a competent team.

To maintain self-awareness and humility in leadership, he discusses the necessity of overcoming personal limitations, growing, and evolving to meet the needs of the business, the community, and his family. Spiegel describes this as a battle with himself to become a better version eve ...

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Spiegel's Personal Life and Work-Life Balance

Additional Materials

Actionables

- You can designate a "No-Screen Saturday" to disconnect from technology and engage in activities that foster family bonds, such as board games, outdoor adventures, or cooking together, ensuring that work doesn't encroach on quality time.

  • By setting aside one day a week where all family members agree to put away their phones, tablets, and laptops, you create a space for uninterrupted interaction. This could involve planning a hike, having a picnic, or working on a DIY project together, which not only strengthens relationships but also provides a refreshing break from the digital world.
  • Start a monthly "Family Council" where each member can voice their thoughts and feelings about the family dynamic, allowing for collective problem-solving and mutual support.
  • This strategy involves gathering the family for a structured meeting where everyone, regardless of age, is encouraged to share their experiences, challenges, and suggestions for improving family life. It's a way to practice active listening, show empathy, and make decisions that consider everyone's well-being. For example, if a child mentions feeling left out, the family can brainstorm ways to ensure they feel more included in future activities.
  • Implement a personal "Feedback Friday" rit ...

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