Snapchat turns down $3bn Facebook bid

Posted by: Jennifer Cefai (3 years, 11 months ago)

Reports have claimed that hit messaging app Snapchat has rejected a $3bn buyout offer from Facebook. Snapchat’s 23-year-old CEO Evan Spiegel apparently turned down the offer - three times the amount made for (and accepted by) Instagram the previous year - based on his belief that the app will be worth much more come 2014.

With the relatively unprofitable Twitter valued at over $23bn post-IPO, Spiegel has reason to believe it might be worth waiting out offers and seeing what results 2014 might render. The app taps into a market Facebook CEO Mark Zuckenberg is desperate to get ahold on – the teen market. Teens have gotten bored of Facebook and have turned to Snapchat, and this is apparent in the 350 million messages exchanged through the app daily.  

Whilst it’s unlikely that Snapchat’s appeal will fade any time soon, the app’s nature remains revenue-less and it might be worth Spiegel’s while to consider a buyout like Facebook’s. On the other hand, we doubt it will be the last time Zuckenberg makes an offer – this one followed a $1bn bid earlier this year.

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