Yes this is shocking news, and it certainly isn’t every day that a company is offered $3 billion in cash for ownership from Facebook… but before we release all of our criticism on to our twitter feeds for the whole world to see,  let’s hide our smartphones and put things in to perspective:

Snapchat is 2 years old.  It is one of the fastest growing digital services in history.  People from all over the world are participating in the daily “snap” to their friends and family.  The application contains many avenues for future monetization, such as advertisements for example.

There is no doubt that $3 billion is a LOT of money.  But, is that to say that snapchat isn’t worth that amount?  Who’s to say that snapchat won’t be worth more money in the future?

Looking back, Google refused yahoo’s offer of $1 million, and similarly Facebook refused Yahoo’s offer of $1 billion.  At the time these sounded like very bold decisions, however nowadays the move to decline these offers would seem pretty obvious.

There’s no way to tell if Snapchats decision was right or not yet, though it is safe to say that Evan Spiegel values his company highly, and sees a bright future for Snapchat in terms of subsequent offers potentially surpassing Facebooks initial offer.  Facebook as well, will likely not regret it’s decision to propose an offer of this degree.

http://www.businessinsider.com/snapchat-facebook-offer-2013-11

http://www.forbes.com/sites/markrogowsky/2013/11/14/maybe-snapchat-is-crazy-to-turn-down-3b-but-was-facebook-nuts-to-offer-it/