Snapchat has recently been all over the news regarding their rejection of $3 billion from Facebook to buy the company. While I have already written a blog regarding this, it is interesting to see the situation from another persons’ perspective. While I talked about why Facebook would offer $3 billion for a revenue-less company from a Finance/Marketing angle, Zoe came at the situation from a different angle.
Zoe Lin’s blog about Snapchat mainly refers to their value proposition which she describes as “[allowing] their users to send pictures to their friends in an easy and fun fashion.” She goes on to state that she believes Snapchat should have accepted the offer. While she thinks that they have a strong value proposition, she predicts that it will lose popularity in the long term as a result of her own experiences with the app. She brings up an interesting point that Snapchat is popular because it is new and currently a “fad”, however it is hard to tell when people will begin to move on to other new “fads”.
And I agree. While Snapchat is potentially worth $3 billion now, it is impossible to know what the market will be like in the future.
https://blogs.ubc.ca/zoeyichialin/2013/11/13/for-better-or-for-worse/
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