Snapchat reportedly turned down $3 billion in cash from Facebook

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Snapchat reportedly turned down $3 billion in cash from Facebook

After spending $1 billion to buy Instagram, Facebook was reportedly willing to triple that sum in a bid to acquire Snapchat. But according to The Wall Street Journal, Snapchat rejected an offer of "at least $3 billion" in what would have been an all-cash transaction. It's a startling revelation, one that suggests Snapchat's executives believe their product could ultimately prove even more valuable than what Facebook put on the table.

The Wall Street Journal's report goes on to say that Snapchat CEO Evan Spiegel won't seriously consider any acquisition offers until early next year. The young co-founder is reportedly hoping that Snapchat's meteoric growth will propel the company to an even higher valuation. Snapchat currently tallies over 100 million users, with over 350 million snaps sent through the service every day. Prior to its aggressive offer, Facebook tried in vain to halt Snapchat's momentum by copying its formula with Facebook Poke. But the messaging app has seen little attention since launch, suggesting Facebook has all but given up on the experiment.

Source: http://www.theverge.com/2013/11/13/5100446/snapchat-turned-down-3-billion-facebook-acquisition-offer


Was talking about this in work today. If you was the owner of Snapchat, would you have accepted the offer of $3 billion or do the same thing as Evan did by rejecting the nice offer Facebook gave him?

[myles]

yes i freaking would. i would be set for the rest of my life

[scottish]

Yes, as above set for life pls

[Jurv]

reject reject reject

facebook destroys everything

also i reckon they're worth loads more

[FlyingJesus]

I'd accept it but make them pay it all in 2p coins

[Matthew]

Err I'd probably accept, not sure though!

[Aiden]

I'd accept it and just start sometime else...
It probs wouldnt be as popular but you'd have a billion pound lol

[Futz]

I'd accept it, 3 billion is an insane amount of money, especially when they're a tiny team of people

I don't think snapchat is worth 3 billion in all honestly, I dont even think it makes much money at the minute it's just got the potential to make money because of how many people use it. I'm not sure it'll last either

also I really do think that the idea could easily ripped off by facebook without concequence by changing minor features

[Kardan]

Of course you'd accept it. I also can't believe it's worth that much. Surely this report must be wrong? And how is Snapchat even worth 3 times as much as Instagram? I'm baffled.

[Jurv]

OH 3 BILLION I THOUGHT IT SAID 3 MILLION

i think i would deffo accept then, i would love all that $$$

[Matt]

Well they seem pretty confident that it can make more than the $3 Billion and I'm sure they'd have gotten a lot of advice on whether or not to accept the offer. I'd reject it and wait a while.

[scottish]

http://www.theverge.com/2013/11/15/5106950/google-snapchat-4-billion-buyout-rumor

Google offered $4bil apparently.

[Chippiewill]

They probably want to force them into a bidding war. If facebook want them now they basically have to offer $5bn.

[-:Undertaker:-]

Snapchat will just be a fad like most other things, mad not to have accepted but there you have it.

[Explorator]

Facebook will one day try to buy out everything.

Their business is selfishness tbh, they need to have 100% of what's popular, and if they don't get it, they copy it.

[MKR&*42]

If you've got something so valuable that Facebook and Google are bidding billions over it, then I'd suggest keeping it as long as you can forecast some growth. Then try and sell it for as high as you can.

That said, 4 billion $ would do me nicely.

[Shar]

I'd accept. Snapshots not going to be a big thing for long.

[Daltron]

3 billion how insulting

[Northquake]

Snapchats so lame. id offer them £3 after rejected that amount of money!

[Lucy]

I recall the huge buyout of the owners of Draw Something, pretty sure that collapsed this year. Insane amounts of money get thrown around :/

[scottish]

Draw Something and Omgpop was bought for $180m from Zynga

Not really in same ballpark :P

[!x!dude!x!2]

why does facebook wanna buy everything.
i would say no

[Mikey]

I would keep negotiating an offer and gaining interest from other companies while in the process of it to get a better price. If all fails of course I would, tons of money and would set you up for life. :)

[Absently]

Snapchat will just be a fad like most other things, mad not to have accepted but there you have it.
yeah that's exactly what i think. it probably doesn't have much more of a life left to it.

[-Moniquee.]

The longer you leave it though the more it will be worth because it will always be getting more users. 3 billion would be sweet though haha

[Chug!]

Definitely accept. Why would you not. Snapchat isn't that great - lol.

Take a picture. Send. Someone sees for 10seconds. It dies. Kept in Snapchat records forever. Never seen by us again.

Nah, I'd take the 3Billion$ pls

[Yupt]

unless they have plans to make it worth even more then i don't understand why you wouldn't take it.

3billion is a ridiculous amount of money even when shared throughout the team - there's plenty of money there to also fund a new project which is always fun.

[Demi]

unless they have plans to make it worth even more then i don't understand why you wouldn't take it.

3billion is a ridiculous amount of money even when shared throughout the team - there's plenty of money there to also fund a new project which is always fun.

I agree with you, maybe they have new plans?

[e5]

Couldn't care less what facebook did to it if I was $3 bill richer. I would have accepted. Would have been a good little profit ;-)

[Demi]

Yeah exactly! I agree Elliott.

[RapLuvr334]

snapchat is a gimmick it'll be dead soon the only people who use it anymore are 14 year olds and thirsty kids

[IceNineKills]

what idiots, it's free from the app store.

[RapLuvr334]

what idiots, it's free from the app store.hi i live in brighton too whats up friend !!

Edited by Nick (Forum Super Moderator): Please don't post offtopic.

[IceNineKills]

hi i live in brighton too whats up friend !!
hi.

[compositeLegend]

Someone seems a bit arrogant. If it dies soon, their own freaking loss.

[Reality]

I wouldn't actually accept it as they yes worked hard to creat and develop it and launch it to iOS and play store; Facebook would ruin an app like that just wouldn't be the same probably!!