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Snapchat Leverages Value by Rejecting Facebook Offer

Many thought rejecting Facebook’s offer was a big mistake. However, what they didn’t realize was that there was a method to the madness. The ploy increases Snapchat’s leverage power.

Nov 16 2013, 1:55am CST | by

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Snapchat Leverages Value by Rejecting Facebook Offer
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Snapchat Leverages Value by Rejecting Facebook Offer

Snapchat’s CEO, Evan Spiegel rejected an offer of $3 billion by Facebook. There were quite a few who thought this was madness of the highest degree. But there are inside reasons to Evan’s stratagem. Though the deal went awry, Evan did get something worthier in return: leverage and empowerment for future haggling. Now the future lies open to Snapchat. Had Spiegel sold his startup to Facebook it would literally have been the end

He would have been left with a whole lot of cash on his hands and nothing else. In fact, Facebook would have been paying close to $4 billion were other factors added up. Even Tencent and Google made their respective offers only to face rebuffs that left them reeling. 

Snapchat is going strong though. It is a successful venture that has amassed millions in funds. Its user base is increasing at a rapid pace. And the future prospects look excellent for this messaging firm. Spiegel has made it known that he is not interested in any offers whatsoever until early next year. By then the user base will have expanded so much that a higher bidding price may be made. 

Facebook in the past came up with “Poke” a messaging application that bore some resemblance to Snapchat. However, it failed to make it and had to be scrapped. Snapchat is a unique experiment that has seen an astounding amount of prosperity. Its fortunes cannot be replicated easily by anyone else. 

Source: WSJ

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Report: Yahoo Buying Mobile App Company Flurry

Source: AdWeek

Yahoo is buying Flurry, a mobile app advertising and data company, according to a report this morning. CEO Marissa Mayer's latest acquisition would give Yahoo a bigger presence in mobile advertising, an area in which it has noticeably lagged. Flurry will cost "hundreds of millions of dollars," according to Re/Code, which broke the story on the acquisition, citing unnamed sources. Yahoo watchers have expected the company ...
Source: AdWeek   Full article at: AdWeek 4 days ago, 3:06pm CDT


Update: 10

General Electric's First Snapchat Is One Small Step for Brand Kind

Source: AdWeek

General Electric is blasting off on Snapchat, sending out cryptic-but-fun drawings that depict space travel and science while hinting at an announcement tomorrow that is tied to the 45th anniversary of the moon landing. The messages represent the industrial giant's first "snaps"—which is the platform's vernacular for disappearing digital messages— while joining a growing list of brands that use the service to c ...
Source: AdWeek   Full article at: AdWeek Jul 15 2014, 1:14pm CDT

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Update: 9

How To Use Snapchat's New Geofilters, A Feature It Kept Hidden Until Now

Source: The Business Insider

Snapchat has been testing its geofilters feature for some time now, but now everyone can use the feature — if you're physically in the right place. Geofilters let you add specific, location-based filters to your photos. For example, if you snap a picture in Manhattan, you'll see different geofilters compared to if you were in Brooklyn. Some think Snapchat may eventually monetize geofilters by stuffing ads into them when you send snaps from certain l ...
Source: The Business Insider   Full article at: The Business Insider Jul 15 2014, 10:09am CDT

Update: 7

4 Years Ago, A Stanford Student Named Evan Spiegel Left A Comment On TechCrunch And Got Slammed...

Source: The Business Insider

No one should be underestimated, as evidenced by a comment thread on TechCrunch from four years ago.  Then, a founder who raised $10 million in one year wrote a guest post. One of the first comments on the article was written by a user named "evanspiegel." Evan Spiegel is the co-founder of Snapchat, a multi-billion-dollar messaging app. Then, Spiegel was still in school and he was working on a venture that turned into Snapc ...
Source: The Business Insider   Full article at: The Business Insider Jun 26 2014, 8:12am CDT

Update: 6

If this article offends you, I’m sorry

Source: The Washington Post

Public apologies are like currencies: The more they’re issued, the less they’re worth. Nearly every day, another famous offender expresses the deepest of regret for doing — or usually saying — something awful. It could be Snapchat co-founder Evan Spiegel apologizing after misogynistic e-mails he sent his Stanford University fraternity brothers back in 2009 and 2010 came to light. (“They in no way ref ...
Source: The Washington Post   Full article at: The Washington Post Jun 20 2014, 2:39pm CDT

Update: 5

MLS turns soccer stars into superheroes — literally

Source: Digiday

Did you see Holland’s Robin van Persie fly through the air like Superman during the opening match of the World Cup? It was incredible, maybe even superhero amazing. Check it out if you missed it: The notion that athletes are heroic is nothing new. Now, Major League Soccer has brought that idea to life in a new lo-fi, high-tech digital campaign for the World Cup. Pro athletes are the closest thing we have to superheroes in real life (unless you count Catman who kee ...
Source: Digiday   Full article at: Digiday Jun 20 2014, 7:01am CDT

Update: 4

Week in Tech: Week in Tech: Amazon sets fire to phone market, 3D is saved and Nexus nixed


In years to come, we'll tell our children that Amazon wasn't always the only company on earth - and they'll laugh at us, and make goofy faces when they think we're not looking. Jeff Bezos's latest step towards total world domination is an Amazon-powered phone, but is it good enough to rival iPhone 6? And will there even be a Nexus 6 for it to face off against? If only there was a fact-filled ...
Source:   Full article at: Jun 20 2014, 5:10am CDT

Update: 3

Five things to start the day: Facebook's Slingshot, free cash in St. Pete, SunTrust lights up

Source: Tampa Bay Business Journal

What happens when a deal to acquire a popular app falls through? Make your own. Even though Facebook ended negotiations to buy Snapchat last year, the company still wanted in on the appearing/disappearing photos game. Enter: Slingshot. Facebook released the new app this week, one that emerged from a hackathon held late last year, according to the New York Times. Not sure you can make money from Twitter? Think again. For weeks, ano ...
Source: Tampa Bay Business Journal   Full article at: Tampa Bay Business Journal Jun 18 2014, 6:39am CDT

Update: 2

The Fabulous Life Of Evan Spiegel, CEO Of Billion-Dollar Startup Snapchat

Source: The Business Insider

Growing up, Snapchat CEO Evan Spiegel led quite the privileged life. He's even admitted to it.  "I am a young, white, educated male," he said at a conference. "I got really, really lucky. And life isn't fair." Still, Spiegel and his cofounder Bobby Murphy have built one of the most popular apps for sharing photos and videos with friends in private.  Facebook had a failed attempt with Poke, which was in ...
Source: The Business Insider   Full article at: The Business Insider Jun 15 2014, 8:46am CDT

Update: 1

Three LA Boys: Snapchat's Evan Spiegel, Tinder's Sean Rad and Whisper's Michael Heyward (Nellie Bowles/Re/code)

Source: Techmeme

Nellie Bowles / Re/code: Three LA Boys: Snapchat's Evan Spiegel, Tinder's Sean Rad and Whisper's Michael Heyward … Evan Spiegel, co-founder and CEO of Snapchat; Sean Rad, co-founder and CEO of Tinder; and Michael Heyward, co-founder and CEO of Whisper have become, in many w ...
Source: Techmeme  Full article at: Techmeme Jun 14 2014, 10:20pm CDT

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.




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