People have become increasingly reliant on modern technology, and businesses are constantly evolving to accommodate new trends and changes. Gracia’s blog post on Facebook offering $3 billion for Snapchat exemplifies this pattern.
Snapchat, a photo-sharing mobile app developed by CEO Evan Spiegel, has skyrocketed in popularity in the past year and gained the attention of Facebook Inc. A $3 billion buyout offer from Facebook was subsequently rejected. People briefed on the matter say that is is unlikely Mr. Spiegel will be considering an acsquisition or investment until at least early next year.
(I agree with Gracia’s point that Snapchat is not a sustainable company; much like Twitter, it has no tangible business plan and lacks strong revenue streams. I also agree that Snapchat’s popularity will not continue, and in the long-run its profitability is volatile. It’s hard to see how a platform based around disappearing pictures could be expanded, so once the appeal dies out there are no conspicuous options to pursue. With Snapchat rejecting such a substantial offer, it needs to take advantage of its large user base and find ways to generate profit.