Almost ashamed to say it, Snapchat has become part of my everyday life. As much as I am aware that it wastes my time, I use it just as much as I use Facebook, and so it caught my eye when I saw an article of the two in the news. An article that actually took me by surprise. Snapchat has once again rejected Facebook’s cash offer for the company. Mark Zuckerberg previously offered $1 billion to buy Snapchat but was rejected. This time around, for $3 billion, the offer was turned down once again. Snapchat is an app where a user sends a photo to a friend, with drawing or writing, with the friend only allowed to view it for a maximum of 10 seconds after opening. From there on, a conversation begins and essentially, friends “chat” over “snaps” – hence the name. Snapchat has been welcomed by young adults today – one of the top apps in the App Store. With 5 million users daily, it has proven to be the biggest no-revenue mobile app since Instagram. Instagram was bought by Facebook for $1 billion. So when Snapchat CEO Evan Spiegal turned down the $3 billion offer, eyebrows were raised. This offer was a huge deal – three times what Facebook paid for Instagram. The reason Facebook wants these applications because they want to own photos on mobile. I think it was a smart decision of Snapchat as they will eventually want an IPO to further expand their company. It will be interesting to see how the company performs independently in the coming years, as it is evident that they are staying clear of what Instagram did. My question is: will Snapchat last?
Article:
http://www.businessinsider.com/snapchat-rejected-a-3-billion-all-cash-offer-from-facebook-2013-11
Trackbacks