Recently, Facebook tried to buy Snapchat for $3 billion, however, this offer was rejected by Even Spiegel who is the current CEO of Snapchat. During an interview with Spiegel he claimed that Facebook will not be able to purchase Snapchat with $3 billion dollars or more. Spiegel strongly believes that Facebook will soon begin to diminish in the world today and it will be long forgotten in the upcoming years. Many assumptions are made in this claim, they are assuming that consumers will change their taste and stop using Facebook in the next 3 to 5 years. Facebook has made some successful companies acquisitions in the past and one of them being Instagram.

Although Facebook failed to acquire Snapchat, there is no evidence to support Spiegel’s claim that Facebook’s downfall will be in the next few years. Facebook has over 1 billion users and many more potential users in the future. Facebook has established a strong consumer base and customer loyalty. Users that have left myspace, twitter, to join Facebook has never gone back. However, it is crucial for Facebook to maintain their current status in the media industry because there is an increasing number of emerging firms into the market that create more competition in the market such as Snapchat.

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