Snapchat Rejected $3 Billion Buyout Offer from Facebook

Snapchat Rejected $3B Buyout Offer From Facebook
SAN FRANCISCO -- Mobile messaging startup Snapchat rejected an acquisition offer from Facebook (FB) that would have valued the company at $3 billion or more, according to a Wall Street Journal report on Wednesday.
Snapchat CEO
AP, Jae C. HongSnapchat CEO Evan Spiegel dropped out of Stanford University in 2012, three classes shy of graduation, to move back to his father's house and work on Snapchat, a mobile app that lets users send photos, videos and messages that disappear a few seconds after they are received.
Facebook representatives reached out to Snapchat in recent weeks to discuss the all-cash deal, which would have been Facebook's largest acquisition ever, the report said, citing anonymous sources.

Facebook declined to comment. Snapchat could not immediately be reached for comment.

Snapchat, which allows consumers to send smartphone photos which automatically disappear after a few seconds, has proven popular among teenage users.

The report of Facebook's interest in Snapchat comes a couple of weeks after Facebook, the world's No. 1 Internet social network, acknowledged that it was seeing a decline in daily use by young teenagers in the U.S., although it said overall use by teenagers was stable.

Shares of Facebook were up 3.1 percent at $48.05 in afternoon trading on Wednesday.

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Should have taken the money.

November 16 2013 at 11:07 PM Report abuse rate up rate down Reply

He invented a program that allows exchanges that are not on the web forever. Why would he want to sell out to a company that is a sell out like Verizon and gives our private info to the government?

November 15 2013 at 4:00 AM Report abuse rate up rate down Reply

That's an awful lot of cheese to say no to.

November 15 2013 at 3:26 AM Report abuse rate up rate down Reply

Wow, what an idiot! The hell with pride, that's $3 billion

November 15 2013 at 12:24 AM Report abuse rate up rate down Reply
1 reply to aripalda's comment

I'm glad he turned them down. Billions on paper isn't worth anything but what he's doing is. He doesn't have to get ultra rich to be successful and if he's smart he will keep what is his and his alone. You can't trust anyone these days and I don't blame him. He has a great future ahead of him if he stays on this path.

November 15 2013 at 2:10 AM Report abuse rate up rate down Reply

love that is a throw way......... in the instant and then its gone....... I love it. great job.

November 15 2013 at 12:20 AM Report abuse rate up rate down Reply

good for u don't sell out to sell outs............... they just consume all ... and that is a lot.. great for u..

November 15 2013 at 12:18 AM Report abuse +1 rate up rate down Reply
John Roberson

A poor business decision on the part of the upstart company. Take the cash now and diversify. Give a part back to those who have helped in the development and invest the rest

November 14 2013 at 11:55 PM Report abuse rate up rate down Reply

Wow! $3 Billion. Did he give a reason for declining the offer?

November 14 2013 at 11:50 PM Report abuse rate up rate down Reply

I don't like FB and refuse to sign up with them. When I make a comment I do not my entire name printed along with it, and that is one BIG flaw FB has

November 14 2013 at 11:40 PM Report abuse rate up rate down Reply
1 reply to Trish's comment

Use your privacy settings on FB and set up a separate accounts with each site you visit so that no one can access the information you don't want them to have. I may be wrong but when I want to interact with a site I am allowed to use my screen name. Also you need good firewalls so that no one can break into your information.

November 15 2013 at 2:34 AM Report abuse rate up rate down Reply

We will here great things about this guy.He is humble and doesn't make emotional decisions .Another human being would had gotten excited an taken the offer.Like the fools who sell their house to later find out it when up in value.

November 14 2013 at 11:03 PM Report abuse +1 rate up rate down Reply