Snapchat recently turned down a $3 billion acquisition offer from Facebook. Some investors also value the startup at $4 billion. Lucasfilm or Marvel were both sold to Disney at $4 billion. Think about that….

Why is this company given such a high value? Instagram, a similar photo sharing app had its value slumped down to $715 million. So what makes Snapchat special? Well Snapchat is a mobile video and photo sharing social media app. One special quality about the app is that the “snaps” or pictures are temporary. They only exist for a few seconds and then they are deleted. When looked at the two apps in the long run, Snapchat will be more durable because of this trait. In this digital age, erasable media is very attracting. Especially with the growing fear that nothing on the internet can be deleted, this app has attracted many customers and is still growing on a daily basis.

Thus Snapchat has bought “more users into the picture” and are keeping them there which makes them 4 times the value of Instagram.

http://mashable.com/2013/11/14/snapchat-worth

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