Snapchat rejected $3 billion offered by Facebook for the acquisition of the service. The group seems to follow WhatsApp footsteps, and hoping to derive more in a few months.
Facebook has been trying so hard to grab mobile users as the Menlo Park Company is moving towards saturation point. Last year, it offered around $1 billion to famous popular messaging app WhatsApp, but that deal didn’t go through successfully.
Recently, Snapchat, following footsteps of WhatsApp, slammed the door in the face of Mark Zuckerberg, who put $3 billion in-cash offer on the table. Evan Spiegel, CEO and founder of Snapchat has said that they are not considering any proposal for a time being, and if the sale is to be our option, we’ll talk about it only in 2014.
According to findings, Facebook had proposed $1 billion to Snapchat, and today, even in the wake of the successful IPO of Twitter, has leavened its offering to more than $3 billion. The proposal is clearly tempting since it’s doubled of what was offered to Instagram last year. The counterparty is opting to wait until next year in hopes of better valuation for the company and lure of some “big.” When Snapchat refused the previous offer, Facebook created its own app called “Poke”, which was a flop show; and it’s 382nd most popular social-networking app in the U.S.
Snapchat is a messaging service, gathering insane popularity now-a-days. Its main feature is to send private texts, video, and photo messages, ensured by the fact that the messages themselves are destined to disappear after a short time. Needless to say, these characteristics of the service have resulted to be the focus of the activities of sexting among young people in a short time, which has made the app is a success.
The rate of involvement of the service has reached much higher level than other social networks, and it led to move the spotlight on the brand rewarding its market performance in recent months. The growth of the app is increasing, and CEO might change his mind to open negotiations with potential buyers next year. Snapchat thinks they can still grow, and the ghost will continue to scare those who see it as a possible threat or opportunity.
Currently, Facebook has 1 billion monthly active users; on the other hand, there are 5 billion mobile phone users, and if it acquires Snapchat successfully, then they would be able to exploit massive smartphone users. Proportionally, it will increase its mobile ad revenue as 14% revenue of Facebook comes from the mobile industry. We should also remember that Facebook spurned $1 Billion acquisition offer from Yahoo in its initial phase.
In this game of turning down billion dollars offer, Google has outbid Facebook with $4 billion offer. As this information came directly from Om Malik founder of GigaOm who tweeted that after Facebook, Google has offered $4 Billion on which Snapchat CEO denied snugly.
Both Facebook and Google are mum on these reports which indicate these are just rumors or gossips. However, it’s definitely increasing popularity of Snapchat.