What have you got upto this week? Well, if you’re 23 year old CEO and Co-founder of Snapchat, Evan Siegel you’ve just casually turned down a buyout offer worth $3 Billion Dollars (1.8 Billion Pounds) from Facebook, nothing major.
Founded in 2011, Snapchat allows users to take photos, videos and more and send them to their specially controlled list of recipients, with snaps lasting from 1-10 seconds. Despite having $0 in revenue, the rapidly growing messaging app rejected the all-cash acquisition offer from Facebook according to sources briefed on the matter.
It’s rumoured Spiegel is holding out until next year at the earliest when he’s confident of maybe even a larger valuation with rumours of Chinese e-commerce giant Tencent HoldingsTCEHY offering to lead an investment somewhere closer to $4 billion. Facebooks motivation in purchasing the app is probably linked the site trying to increase its teenage users after last month admitting younger members are using the social network less and less.
Snapchat has recently gone from 200 million users in June to 350 million in September so it looks likely the growth will only continue and vindicate this decision to turn down the big bucks for now.
