Why Facebook Would Pay $3 Billion for Snapchat (And Why It Shouldn’t)

(http://www.wired.com/business/2013/11/facebook-snapchat/)

I found this article really interesting because it shows relations because fast growing and already huge companies.

Snapchat keeps on expanding, the article talks about “around 350 million photo uploads per day”, showing how this little 20-person company has grown in only 3 years .

Facebook on the other side, is a settled company, with more than a billion users around the world and huge revenues. Facebook already bought Instagram when it felt that it could be a huge-profit generator.             

We see there how relatively small businesses are being surrounded by huge companies as soon as they start to grow .

It`s also interesting to see how Snapchat refused a $ 3 billion offer from Facebook, probably a proposition they never thought they would get a few years back then.

But Snapchat`s reaction is not common, usually small businesses get swallowed by big companies, who rather than leaving the company develop and maybe become a serious competitor, prefer spending millions/billions .

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