Is it worth that much?
Mark Zuckerburg recently tried to spend $3 billion cash on a company that only has an application sending disappearing photos instead of any revenues. In the first place, it is really astonishing that Facebook is willing to pay so much money, which triples the value of Instagram. What is more incredible, the company has rejected the $3 billion offer from Facebook. The company is well known as Snapchat.
Snapchat is so popular among young people, and it is the biggest competitor of Facebook and other social networks. On the other hand, Facebook has stated that, “Young people are becoming less interested in Facebook any more”. From my perspective, Facebook is willing to pay $3 billion for Snapchat for the following reasons.
One reason is that Snapchat is a novel social network whose main function is photo sharing, and photo sharing is also the main function to attract users for Facebook. However, Snapchat has a trend to become the most popular application of photo sharing, and it is definitely not a good news for Facebook. Another reason is that Facebook has an increasing loss of users, who show love to Snapchat. At this point, a lot of data and statistics in Facebook no longer exist; so Facebook will not know how people interact with each other well. This is really bad for the development of Facebook.
I believe that Snapchat is worth that much, even more. Therefore, to keep developing own company culture and to become a strong independent company are significant for Snapchat.
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