3 Billion isn’t cool ?
by shubhankarrustagi
“$3 billion isn’t cool. You know what’s cool ? walking away from $3 billion”
Said Snapchat to Facebook upon declining a 3 billion dollar offer by Facebook for a buyout. Snapchat is a company that was started about 2 years ago and has an app that allows its users to send pictures or videos that can only be viewed for a limited period before they are erased. Snapchat’s value proposition, allows the users of the app to edit and share pictures and videos in a easy way. It is currently worth at $860 million, so another question that should be asked is ” Why Facebook wanted Snapchat soo badly ? “.
Facebook is a social networking website that reaches 1.2 billion people all around the world, while Snapchat is a 20 personal company which has no form of revenue. I believe the reason for Facebook’s offer to buyout Snapchat lies in Snapchat’s value proposition. In todays world we see that sharing Photos and Videos is what fuels the social networks as more and more people upload photos. Thus by acquiring Snapchat we see that Facebook is attempting to do the same as it did with Instagram in 2012, it is attempting to increase the user base by making more outlets for them to upload, share and edit pictures.