In response to Alan Huang’s blog on Snapchat’s rejection from Facebook’s 3 million dollar acquisition offer, I support Snapchat’s decision. Even though they haven’t generated much revenue, I believe Snapchat had its reasons for rejecting the offer. Facebook, as an incredibly large company, can easily take over Snapchat. Similar to what Comm 101 did in class with the Netflix situation, where some students thought it’d be the best choice for Netflix to join top companies, such as Youtube. However, coming to a conclusion that the best possible solution for Netflix to continue as a separate company, is to not merge with others, for they can continue to earn profits themselves. Relating back to Snapchat’s situation, they, themselves, have raised $60 million from investors, where they valued the company at $800 million. At this rate, Snapchat’s rejection from Facebook cannot be called as stubborn, but a smart move.
Sources:
http://abcnews.go.com/blogs/business/2013/11/snapchat-doesnt-make-any-money-why-is-it-worth-so-much/