Another Aspect of Considering a Fantasitc Deal: $3B for Buying Snapchat

Recently, Facebook suggested to purchase Snapchat by paying $3 billion back. There is no doubt that this is a huge amount of investment, and this purchase means a turning point, or in other words, a once-for-all chance for a company which is  just two years old. However, human beings’ thoughts cannot be manipulated easily: Snapchat shut the negotiation down.

There are numerous people who wonder why  Snapchat is such stubborn to insist that they can create more value in the future. Here is a statistics showing that back to the history, not all the companies made appropriate choices. Sometimes, if a company is not capable to change people’s lives, they’d better to accept these treasure deals. 

Facebook is an appropriate example that they declined the deal provided by Google for $15 billion. But, indeed, they made the traditional means of communication changed successfully. Therefore, that deal did not worth so much if we make a comparison with how they worth now.

In the future, there is still a reasonable possibility that Snapchat can make a difference on human’s lifestyle. Reasons can be concluded into their value proposition is different, they keep people’s privacy by limiting the time of using profile. But they still need to consider their platform is hot-white mobile which does not have too much capacity to expand.

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