Evan Spiegel, founder of SnapChat recently refused a 3 billion dollar offer from fellow social networking giant Facebook for the company he started in September 2011 while studying at Stanford.

With SnapChat still not producing revenue, a quick glance at such a large offer would have most people questioning how Facebook placed such a high value on the company.

With 350 million photos being shared per day in September, SnapChat has shown a trend of exponential growth without showing signs of slowing down, and Facebook is getting nervous.

Will the competition from SnapChat take away from Facebook’s user’s? I say it is doubtful and agree with Mr. Spiegel that the two forms of social media can coexist without harm.

However, Facebook is known to try and purchase perceived threats as they did with Instagram. So as SnapChat begins to move towards monetization it will be interesting to see Facebook make even more substantial offers in the future.

Observing a 3 billion dollar offer being rejected by a 23 year old college student is an inspiration for many to follow their entrepreneurial passions. While the risk is great and failure is common, the rewards of pursuing and achieving your dream can be plentiful.

Sources:

http://www.businessweek.com/articles/2013-11-13/snapchats-3-billion-rejection-and-the-great-facebook-unbundling#r=hpt-fs

http://www.forbes.com/sites/tristanlouis/2013/11/16/snapchat-and-other-best-and-bungled-billion-dollars-offers/

http://www.bbc.co.uk/news/technology-24925932

http://www.theguardian.com/technology/2013/nov/13/snapchat-app-sexting-lawsuits-valuation