Facebook Acquisition Offer to SnapChat 

Usually, business’s value is quantitatively determined by the price of share or the future potential of the business. Can you believe that Facebook offered $3 billion acquisition to the company which has launched since 2011?  Snapchat is the business which refused $3 billion acquisition offer from Facebook. This case brings 2 issues; why did the CEO,Evan Spiegel, refused this offer and does Snapchat have value of $3 billion?

In my opinion, the reason that the CEO refused is that he looks the potential growth of Snapchat positive. As many SNS(Social Network Service), such as Facebook and Twitter, showed us the success of the businesses, Snapchat has a potential to become one of the global SNS businesses. They can use the advertisement platform which is already set up by Facebook to generate profit from running businesses.

But in the other hand, I don’t really agree with the value of Snapchat. I agree that Snapchat has high potential and one of the rising businesses, but Snapchat’s target market is too narrow which is mostly teenagers. This will restrict the users. As a result, this will also restrict advertisement platform.

Reference: Timonthy, Lee. N.p.. Web. 15 Nov 2013. <Of course Snapchat could be worth $3 billion>.