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Snapchat Rejects $3 Billion Cash Offer of Facebook

Nov 14 2013, 2:53am CST | by , in News | Technology News

Snapchat Rejects $3 Billion Cah Offer of Facebook
Evan Spiegel of Snapchat Attends TechCruch Disrupt - Credit: Getty Images

As a messaging service, Snapchat has a lot going for it. This is one of the reasons why it has rejected an all cash acquisition offer of $3 billion from Facebook.

Facebook brought a lot of dough to woo Snapchat. Yet the ploy failed since the CEO, Evan Spiegel is in no mood to sell the wildly successful enterprise. That means Facebook’s sum of $3 billion is going back into its coffers. Snapchat has been courted by other parties as well. 

A Chinese electronic-commerce conglomerate has even made an offer that any other firm would probably have not been able to refuse. Over $4 billion was the offer made by Tencent Holdings. However, the youthful CEO of Snapchat is having none of it. He wants to wait till early next year. By then the organization will have grown even more and will thus have a higher value.  

The enterprise basically deals in temporary messages of either textual or photographic reality. They appear on your mobile and after a few seconds or so disappear. It is the “in” thing among teens and young adults who use it frequently to the point of addiction. 

Facebook meanwhile started its offer at a bid of $1 billion. Then it got so desperate that it increased the offer to $3 billion. Yet even that was close but no cigar. On the other hand, Snapchat’s user base is growing astronomically. Snapchat has a lot to look forward to and will be up for grabs by the start of 2014. 

Source: WSJ

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