I took great interest in fellow classmate Amna Massud’s blog on the trendy app Snapchat. In her post she stated that Facebook made a 3 billion dollar offer to the company only to be rejected. I could not believe this and did some research on it myself, as it turns out this was the case.
As it turned out the 2 founding partners turned down financial security for themselves, and probably even several future generations because of pride in their company. Oh yeah, and did I not mention Snapchat has no current source of revenue and that the 2 founders were living in a bungalo the past year? Facebook offered Snapchat the 3 billion with full intentions of advertising to make profit, but as it turns out the 2 founders were not impressed and want to make money without advertising. As Amna said their plan is to instate add-ons which cost money to buy. Do they honestly believe that consumers will pay for add-ons? And even if the add-ons do sell they will never make 3 billion dollars off of them. I personally believe this was a massive value judgement screw-up, as the company becomes a “pain killer” advertisement would not be a mistake.
