Facebook recently wanted to buy Snapchat for $3 million; however Snapchat CEO Evan Spiegel denied the offer. They also denied the offer from the Chinese Tencent Holdings when they tried to buy the firm for $4 million.  Having been in business for only two years, the company has been extremely successful and has grown “to 350 million messages or “snaps” per day, up from 200 million in June.” The CEO believes that the firm still has potential to grow and gain more money.

The idea of joining with one of the most common and popular firms in the world (Facebook) would give Snapchat the opportunity to grow and make more profit by themselves. Facebooks aim was to buy the firm since in October their shares dropped 3 % and they saw Snapchat as one of their most important competitors. Last year, Facebook bought Instagram for $1 billion for the same reason, they feared of competition therefore their way out was to buy the firm even though their revenues were purely notional. I agree with Evan Spiegel’s decision since they are probable of expanding their customer base.

Sources: http://blogs.wsj.com/digits/2013/11/13/snapchat-spurned-3-billion-acquisition-offer-from-facebook/ and http://www.forbes.com/sites/jeffbercovici/2013/11/13/facebook-wouldve-bought-snapchat-for-3-billion-in-cash-heres-why/