In a blog “Snapchat Spurned $3 Billion Acquisition Offer from Facebook” Isabel Vidri bring on one of the most striking news recently which is a photo messaging service Snapchat received $3 billlion acquisition offer from Facebook. However, according to Wall Street Journal, Evan Spiegel, the CEO of rapidly growing application, declined this offer. In her blog, Isabel Vidri states that she agrees with CEO Evan Spiegel’s decision since they still have the potential to raise their company value. As Isabel Vidri stated, this amount of offer clearly shows that Facebook realized the rapid growth of the Snapchat and they feared of competition. In my oinion, they are absolutely right to be afraid because according to The Wall Street Journal Snapchat’s usage had nearly doubled from 200 million messages or “snaps” per day up to 350 million in 3 months between June and September.

Even though Snapchat’s revenues are purely notional, likely to Isabel I also agree with the Evan Spiegel’s decision. Because Snapchat had quickly gained a reputation among young users as a fun way to trade photo messages but also picked up them as an easy way to send sexually suggestive photos. So, for Snapchat making a deal right now would leave many billions more on the table. Since, it is nearly obvious that they will continue to grow and become more valuable in the future.

Isabel Vidri’s Blog: https://blogs.ubc.ca/isabelvidri/2013/11/14/snapchat-spurned-3-billion-acquisition-offer-from-facebook/

http://blogs.wsj.com/digits/2013/11/13/snapchat-spurned-3-billion-acquisition-offer-from-facebook/