This blogs makes reference to Yan Rong’s internal blog:  “Another Aspect of Considering a Fantasitc Deal: $3B for Buying Snapchat” (https://blogs.ubc.ca/yanrong/2013/11/16/another-aspect-of-considering-a-fantasitc-deal-3b-for-buying-snapchat/)

According to Yan Rong’s blog Facebook made an offer to purchase Snapchat for $3 billion. This amount is considerably high especially since the company is only 2 years old. The founder of Snapchat Evan Spiegel, reportedly turned the cash offer down.

Yan Rong suggest that Evan Spiegel should have taken the money and walked away from the company. The reasoning behind his comments are that the social media app is confined to a small market. However in my opinion the is not very accurate. According to Facebook CFO David Ebersman, Facebook has seen a “a decrease in daily users specifically among younger teens.”[1]. All this while Snapchat is experiencing a significant increase in users. Therefore Snapchat may actually have a very bright future ahead possibly becoming the next Twitter, with its short message format. Knowing all this one may say that Snapchat is doing quite well, but according to Breakout, the CEO is either smart or delusional for not taking the deal, since the company has no assets, and it’s facing a legal battle over the patent of the app.