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Snapchat reportedly said no to $3 billion in cash from Facebook

Posted: , by Michael H.

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Snapchat reportedly said no to $3 billion in cash from Facebook
Back in June, Snapchat closed a new round of funding that valued the company at $800 million. Just a few weeks ago, a report came out that Facebook was interested in purchasing the company and had offered over $1 billion in an acquisition deal. Now we're hearing that Facebook really really wanted to buy Snapchat and may have offered a lot more.

A new report from The Wall Street Journal is saying that Facebook may have offered as much as $3 billion in cash to purchase Snapchat... and that deal was rejected. That may sound crazy, but the report goes on to say that Snapchat is fielding multiple offers, one of which is from Chinese e-commerce company Tencent Holdings and may be valuing Snapchat at around $4 billion. 

Of course, either way is sounds like Snapchat co-founder and CEO Evan Spiegel isn't even planning to consider selling the company, or even gathering more investment for at least another year. Spiegel apparently believes that the company will continue to grow enough to warrant an even higher valuation in the future. According to a report from a few weeks ago, Snapchat currently has about 26 million users in the U.S. alone, which is about half as many users as Instagram currently has in the U.S. 

source: WSJ

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posted on 13 Nov 2013, 21:55 3

1. androiphone20 (Posts: 1521; Member since: 10 Jul 2013)


I remember how proud Zuckerberg at saying how Facebook declined aquisition from Yahoo and Micro$oft, say hello to Karma

posted on 13 Nov 2013, 22:09

2. androiphone20 (Posts: 1521; Member since: 10 Jul 2013)


*was :P

posted on 14 Nov 2013, 13:55

7. downphoenix (Posts: 2416; Member since: 19 Jun 2010)


...except Snapchat is a fad that has no value, and the creators will be kicking themselves for not taking that $3 billion payout.

posted on 13 Nov 2013, 23:05

3. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


I think Snapchat will increase further.

posted on 13 Nov 2013, 23:29 2

4. Finalflash (Posts: 1908; Member since: 23 Jul 2013)


I think it'll be dead in the water by then because declining 3 billion at this stage is just greed showing. They likely need to sell it fast because with tech startups (just like in 2000) you never know what will displace you next month.

posted on 13 Nov 2013, 23:44

5. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


FB is the same example, see androiphone20's comment.

posted on 14 Nov 2013, 06:30 3

6. Even4steven (Posts: 37; Member since: 03 Aug 2012)


3 billion for an app that has no revenue and they turn it down??? Just insane. And I like and use the app.. Ask the founder of Groupon how well it worked it for him not to take Google's money and go buy his own island and drink stuff out of a big coconut

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