Mobile messaging start-up Snapchat rejected an acquisition offer from Facebook Inc that would have valued the company at $3 billion or more, according to a Wall Street Journal report on Wednesday.
Snapchat, which allows consumers to send smartphone photos which automatically disappear after a few seconds, has proven popular among teenage users but it is mainly popular in North American and some European countries. Maybe accepting the offer from Facebook is a good choice because the competition in tech industry is so intense that thousands of apps have already been forgotten and mobile software is not sustainable. And both Facebook and Snapchat are witnessing a decline in daily use in teenagers. So a combination between these two social apps can enhance respective qualities and bring another peak in market share.
On the other hand, Snapchat should also try to duplicate the success the of one chatting application called Wechat, which is a popular chatting software in China. It allows users to chat without costing any annual fees and its users can subscribe to many brands like Starbucks and Nike. No annual fees helps it elevate its reputation and popularity among people at different ages, and the increasing number of users makes more brands willing to have contracts with it.
http://www.cbc.ca/news/technology/snapchat-rejects-facebook-s-3b-buyout-offer-report-1.2426180