Comm 101

Lately, the burning question that has entered everyones mind has been..who is Evan Spiegel? Only a few years ago, he came up with an idea to develop an app that combined instant messaging with pictures, with the hopes of targeting a young customer segment. Now, his idea has transformed into the popular app known as Snapchat. So why has Spiegel’s name been circulating around the public? Recently, the 23-year-old Snapchat CEO rejected Facebook’s $3 billion offer to buyout his company, which would have been Facebook’s largest acquisition yet, with Instagram ($1 billion) currently being their largest acquisition. In response to the media’s speculation of this rejection, Evan Spiegel has provided a response to the public, saying that he is waiting until early next year before considering any offers as he believes that the number of Snapchat users will grow and create a higher company valuation. With the high hopes of growing Snapchat to a company valuation of $4 billion, the opportunity cost of time is that the company may have hit its user capacity by next year. So the real question is, who lost out on the deal, Facebook or Snapchat?