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

Not long after Snapchat was a topic of discussion in class, came the news that Snapchat had turned down Facebook’s two acquisition offers. In conjunction with Twitter’s recent IPO of $25 billion, it appears peculiar to me that Snapchat, a company with no actual generation of revenue was already valued at $3 billion by Facebook. While some may argue that this value will only grow, along with it’s doubled number of users at 350 million within 3 months, one has to take a step back when looking at the $800 million raised from investors. There are many other similar phone applications such as Pinterest that have yet to generate revenue but is valued at $3.8 million and has generated $250 million from investors.

However, this is disputed by a second article, which brings out an important and neglected point – while technological advancements have certainly been a focal point of this generation, youth might not be particularly reliable for the prediction of technological trends – more often than not, we give in to the coming and passing of “fads”. This makes one wary of the projected worth of Snapchat despite the countless articles analyzing Snapchat’s point of difference and probable value propositions, as well as afterthoughts as to whether or not it was the right choice for the company to have passed up on Facebook’s offers of acquisition.