Snapchat reportedly turned down a $3 billion acquisition offer from Facebook, according to a report from The Wall Street Journal, hard as that is for the average Joe to imagine. If you offered me that money for anything, I would sell in a heartbeat. Sources say that Facebook offered three times the price it paid when acquiring Instagram for Snapchat.
For the uninitiated, Snapchat allows users to send picture messages that expire soon after they are viewed. The sources say that the $3 billion offer was not Facebook’s first attempt at the image sharing service. You might remember that earlier this year, Facebook reportedly offered to buy Snapchat for $1 billion, but Snapchat declined. So Facebook came back with a $3 billion offer, and Snapchat once again rejected the offer.
Snapchat raised $60 million in funding from investors in June, and the company was valued at about $800 million at the time. However, as the Journal points out, some of those investors have attempted to raise additional rounds of funding, which could have seen the company valued at about $4 billion. Another influence? Twitter’s initial public offering. Sure, Twitter has yet to generate a profit, but despite this the microblogging service was valued at roughly $45 billion after its IPO last week. And Snapchat is THE hip thing among teenagers and young adults right now. I wonder if Facebook has yet another offer.