Snapchat, photo messaging application on smartphones, is a fast developing company that has a completely new concept compared to Facebook and Twitter. There was a surprising news that its CEO, Evan Spiegel, “turning down a $3 billion offer from Facebook (FB) and then a $ 4 billion bid from Google (GOOG).” Is his choice of turning down offers a clever idea?

In my opinion, I think the answer is yes since Snapchat has an idea that is so different from other social networking sites, it should go in the unique way and keep its company seperated from Facebook and Google. Moreover, there is a potential that Facebook or other companies are going to offer a better deal to Snapchat since it has so many aspects that Facebook does not have.

There will obviously be a reason that he turned down the offers. He would have a specific plan for his future. For a business to succeed, it has to make a big opportunity cost for the better and I strongly believe that Snapchat will succeed just like or more than Facebook in the future.

References:http://finance.yahoo.com/blogs/breakout/meet-the-23-year-old-kid-who-turned-down–3-billion-for-snapchat-010309114.html