Snapchat Rejects Facebook's $3 Billion Offer For Acquisition. Um, Why?
Mark Zuckerberg and Evan Spiegel are no longer listed as "in a relationship:" Spiegel, the 23-year-old CEO of Snapchat, apparently just rejected a $3 billion acquisition offer from Facebook. Because, really: who needs to join forces with the world's biggest social network when you have an app notorious for sexting to attend to? For Facebook, the offer makes sense: Bustle reported earlier this month that teens just don't think Facebook is that cool anymore. Snapchat, on the other hand, is hugely popular amongst the demographic.
"If Facebook is saying they are having an issue with teens and they need to find an app for teen advertisers, then it's logical to find an app where teens are spending their time," said Julie Ask, an analyst at Forrester.
Snapchat, the app that encourages users to share real-time photos that disappear after a few seconds, was founded in 2011. It increased in popularity alongside the rise of a desire to interact on social media, whilst still maintaining some privacy. So why would anyone in their right mind turn down $3 billion to sell a company that’s only recently become popular? And a 23-year-old, no less?
As it turns out, Facebook’s own story has taught other tech startups to have patience and wait for the right offer that benefits the company as a whole, not just where the money seems to be. In addition to Zuckerberg’s $3 billion offer, Snapchat has reportedly been approached by other investors — like China's Tencent Holdings, that would reportedly value the startup at $4 billion — and is taking their time to weigh all the options.
Plus, Snapchat is probably not in a rush to be bought off, since they’ve already raised about $73 million in funding from individual investors. At any rate, the app has made it this far, and could well have a chance to stand on its own two feet without succumbing to an acquisition.
Sorry, Zuckerberg, but Snapchat might be around as an original entity — and competitor — longer than you thought.