23 year old founder of SnapChat turns down $3,000,000,000 offer

 

Snapchat, a rapidly growing messaging service, recently spurned an all-cash acquisition offer from Facebook for close to $3 billion or more, according to people briefed on the matter.

The offer, and rebuff, came as Snapchat is being wooed by other investors and potential acquirers. Chinese e-commerce giant Tencent Holdings had offered to lead an investment that would value two-year-old Snapchat at $4 billion.

Evan Spiegel, Snapchat’s 23-year-old co-founder and CEO, will not likely consider an acquisition or an investment at least until early next year, the people briefed on the matter said. They said Spiegel is hoping Snapchat’s numbers – of users and messages – will grow enough by then to justify an even larger valuation, the people said.

The approaches to Snapchat come amid rising exuberance for social media, and mobile-messaging upstarts in particular. TwitterTWTR +2.32%, an unprofitable short-messaging service, is valued at roughly $25 billion after its initial public offering last week. Pinterest, an image-sharing app, last month raised $225 million from investors who valued the company, which also has no revenue, at $3.8 billion.

Facebook had earlier offered to buy Snapchat for more than $1 billion, the people briefed on the matter said. In recent weeks, Facebook representatives contacted Snapchat again to discuss an all-cash offer that would have valued Snapchat at $3 billion or more. At that price, it would be Facebook’s largest acquisition, more than double its nearly $1 billion deal for photo-sharing social network Instagram in 2012.

Facebook is interested in Snapchat because more of its users are tapping the service via smartphones, where messaging is a core function. Facebook has rapidly increased the share of its revenue coming from mobile advertising, but said last month that fewer young teens were using the service on a daily basis.

In June, Snapchat raised $60 million from investors including Institutional Venture Partners; that round valued the company at $800 million.

Three months later, Snapchat said its usage had nearly doubled, to 350 million messages or “snaps” per day, up from 200 million in June.


Get the MMA Underground app. for iPhone and Andriod devices.
iPhone Application Andriod MMA Underground Application

Recent Comments »

CaliKush site profile image  

11/14/13 3:42 PM by CaliKush

Just read a guy didn't take $3 billion as I have my $500 credit limit credit card in my hand. Fuck balls

jcblass site profile image  

11/14/13 3:38 PM by jcblass

idiot. these apps are popular one day and replaced the next. He should have taken the money and went on to make something else.fool

JJSFC site profile image  

11/14/13 3:35 PM by JJSFC

Take the money and fucking run.

pillbottle site profile image  

11/14/13 3:34 PM by pillbottle

For anything with a billion at the end, you would not need to ask me twice.

jahmon site profile image  

11/14/13 3:33 PM by jahmon

Billion $ Cash offer = BossI would be selling that shit in a heartbeat and try to keep a straight face while signing the paperwork

MarsMan site profile image  

11/14/13 3:32 PM by MarsMan

He should sell:1- There's nothing stopping other apps like Instagram and WhatsApp to add a similar functionality.2- He's already made a name for himself...he can get that check cash it and start another company with VC money and not have to spend a penny of his own.

Mencken site profile image  

11/14/13 3:29 PM by Mencken

Did you think I was responding to your point?  Of course you did.  Why would you actually read what I wrote?  It could never be possible that my comments might be to the other person I quoted 

MOAOZINHO site profile image  

11/14/13 3:21 PM by MOAOZINHO

LOLYou just don't get it

Mencken site profile image  

11/14/13 2:46 PM by Mencken

And that can't be monetized with kids?  lol, alright

ryanJ site profile image  

11/14/13 2:37 PM by ryanJ

Simple... *Snaps pic of junk to send to some random chick...* Pop up screen:  Hello, we will be sending this picture along with an explanation of who the original recipient was to your entire phone address book (including your wife)  unless you hit the "Cancel" button in 5 seconds... *Note cancellation fee of $200 is charged when you hit the cancel button* 5, 4, 3.....