Snapchat rejected $3 bn offer from Facebook

Nov 13, 2013
A girl logs into Facebook on her smartphone in Kuala Lumpur on May 15, 2012

The mobile messaging service Snapchat recently rejected a $3 billion cash offer from Facebook, The Wall Street Journal reported Wednesday.

Snapchat, considered one of the up-and-coming applications in , has also had an investment offer led by Chinese Internet giant Tencent, which would value the startup at $4 billion, the newspaper reported, citing unnamed sources.

Facebook declined to comment on the report.

According to the Journal, Evan Spiegel, Snapchat's 23-year-old co-founder and chief executive, is unlikely to consider an acquisition or an investment at least until early next year.

The daily cited sources saying Spiegel was hoping to boost the number of users and messages to justify a higher valuation.

Snapchat is know for mobile messages and photos that disappear after being viewed by the recipient.

Snapchat did not disclose financial details of an investment round earlier this year, but online reports pegged the figure at $60 million in a deal that values the company at $800 million.

"Long story short, we're committed to building a big company around an innovative and fun product," the Snapchat team said at the time.

Snapchat recently introduced a "SnapKidz" version of its application for Apple mobile devices that lets children younger than 13 years old take or draw pictures, add captions, and save the images but not share them.

The application was designed to stay within the bounds of laws restricting information that can be collected about or from children.

The grown-up version of Snapchat has stirred controversy for its potential to be used to share risque pictures that are automatically deleted within 10 seconds of receipt.

The company said last year it topped 100 million pictures shares.

Facebook last year made a huge purchase of the photo-sharing application Instagram. The stock deal was worth $1 billion at the time of announcement, and at closing $747 million.

Facebook, which has more than a billion users worldwide, has been losing ground among younger consumers, who are among the key Snapchat demographic.

The news comes a week after Twitter raised more than $1.8 billion in an . The subsequent jump in share price pushed Twitter's market value to over $20 billion.

Explore further: Snapchat value soars along with number of 'snaps'

add to favorites email to friend print save as pdf

Related Stories

Twitter aims high, but faces hurdles

Oct 31, 2013

How does a company that has lost millions since 2010 and never made a profit raise $1.6 billion in a public offering and reach a value of some $11 billion?

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

8 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Growing app industry has developers racing to keep up

Smartphone application developers say they are challenged by the glut of apps as well as the need to update their software to keep up with evolving phone technology, making creative pricing strategies essential to finding ...

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.