How can you reject a $3 billion offer?

Snapchat is the new hot messaging app with over 5 million users every day. What makes it unique is that messages or photos are allowed to be deleted from the recipient’s mobile device shortly after they are sent.

Recently Snapchat rejected a $3 billion all-cash offer from Facebook however, is this decision smart or deadly for the only two year old company that has no revenue? The rejection of such a high offer was very impressive. I think that deep down it is based on how confident Evan Spiegel, Snapchat’s 23-year-old co-founder and chief executive officer, is about his company and how much risk his company can take. Sometimes, the bottom line isn’t just about money.

Snapchat believes its either getting a higher offer or is becoming the next “big thing” in communication. We can’t do anything to accurately predict what will be Snapchat’s future but there are great examples that can favor the decision of the company. For example, Google’s decision not to sell itself to Yahoo for $1 million or even Facebook that now tried to make the acquisition, didn’t sell itself to Yahoo for $1 billion.