Snapchat Turns Down Facebook’s $3 Billion Buyout

Snapchat Turns Down Facebook's $3 Billion Buyout

Snapchat Turns Down Facebook’s $3 Billion Buyout

Snapchat was created in 2011 by Stanford University students and is very popular among teenagers and young adults. This app allows users to send pictures or videos that erase after 4-10 seconds of viewing it. Snapchat has continued to grow, and just received a $3 billion cash buyout offer from Facebook – and turned it down. A lot of people are debating whether this is a good decision or not. Snapchat cofounder Evan Spiegel wants to wait until 2014 in hopes of a better valuation for the company, he thinks it will be worth more in the future.

A lot of people are confused by Snapchat – many people wonder why users can’t just send the picture via text messaging. While that is a valid point, many people love how quick and easy Snapchat makes it to send a picture, how you can write and draw on the image, and how it doesn’t clog out your text messages with a bunch pictures.

Sanjay Sabnani, Chairman and CEO of CrowdGather sees a future where Snapchat is worth more, “Imagine a world where your default messaging is comprised of snapchats as a primary means of communication instead of just using text message? I think this is already happening in a way, and this is why I believe that Snapchat still has room to grow and bargain for more money in a sale in the near future.”

A Pew Research Center study released this in late October found that finds that 9% of U.S. cell phone owners use Snapchat, which results in about 26 million Snapchat users in the U.S.

What do you think of the offer? Should they have accepted it or wait for a better one?

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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