I totally agree with Chit Leung Leung. I would not turn down such a great offer from the leader in the social media world. I believe Snapchat simply do not have a business model as far. The company should still be focusing on building its audience base, and it should take revenue into consideration in the future as the company expands larger. The only way for this application to generate revenues is through advertisement. However, it is still too early for Snapchat to even start integrating advertisement into the app, and by do so may even result in losing current or new users.
That means Snapchat is not able to make profit anytime soon.
Yet, Facebook still offered to acquire this company with 3 billion dollars. If I were Evan Spiegel, the founder of Snapchat, I would have accepted Facebook’s offer and used that capital to start on another project. Or, if possible, try to turn the acquisition offer into a partnership. By doing this, I am able to keep at least half of the company, and can further develop and improve the application. Most importantly, I would not miss out if Facebook Inc. really turned Snapchat into a profit maker.
Frier, Sarah. “Facebook Said to Offer $3B for Snapchat to Attract Teens.” Bloomberg.com. Bloomberg, 14 Nov. 2013. Web. 18 Nov. 2013. <http://www.bloomberg.com/news/2013-11-14/facebook-said-to-offer-3b-for-snapchat-to-attract-teens.html>.