Apps that don’t make any profit are all the rage nowadays, so it makes complete sense that Facebook would offer Snapchat $3 billion for its business. The real shocker is that Snapchat turned the offer down.
According to The Wall Street Journal, Evan Spiegel – the CEO of Snapchat – isn’t considering a potential acquisition until next year. That makes sense, in a sense. Snapchat is extremely popular with teenagers and college students, a resource that Facebook is no doubt hungry to tap into as social networking moves towards mobile usage. Spiegel is most likely well aware of the potential value he’s sitting on.
Still, it doesn’t change the fact that Snapchat has zero revenue and is essentially yet another messaging application. It’s a bold move to turn down $3 billion, so the team behind Snapchat must be confident that they more than a passing phase.