Snapchat recently denied what would have been Facebook’s most expensive acquisition ever. It was reported that Facebook was willing to buy Snapchat for 3 billion dollars and even that wasn’t enough to buy out the company. Snapchat’s CEO, Evan Spiegel, wants to see how his company’s value will continue to grow before he makes any deals. 3 billion dollars is a lot of money and how certain can you be that your company’s success and value will continue to grow over time? Evan Spiegel has all the right reasons to think his company’s value will increase though. Snapchat’s users are growing in numbers and being active so he would have no reason to doubt his company’s success.  Earlier this year Facebook offered Snapchat 1 billion dollars and now they were offering 3 billion. If Snapchat’s user numbers continue to grow there’s no telling of what kind of offers they might receive next. I think it was a good move for Snapchat to deny Facebook’s offer because as their number of users continues to grow it is clear the amount of money Facebook is willing to offer as well as other companies will grow with it.

Link to Article

http://www.theguardian.com/technology/2013/nov/13/snapchat-facebook-buyout-offer-rejected

Citation

Rushe, Dominic. “Snapchat Rejects $3bn Facebook Buyout.” The Guardian. The Guardian, 13 Nov. 2013. Web. 15 Nov. 2013.