Snapchat is a photo-messaging service that is quickly taking root in the teens and twenty-something age groups. The social networking app is headed up by 23 year old Evan Spiegel, and boasts millions of users. While the network is nowhere near the size of Facebook’s one billion plus users, it is large enough that Facebook is interested in acquiring it.
Facebook reportedly offered Spiegel $3 billion for Snapchat, in an effort to make the photo-sharing service a branch of Facebook’s massive portfolio that also includes Instagram, another photo-sharing service. The offer was most likely sparked by reports earlier this month that teen usage on Facebook is dropping, while Snapchat is quickly gaining ground in this particular market.
Business As Usual
According to reports, Evan Spiegel turned Facebook’s offer down flat, and continued on with his daily routine. Imagine turning down $3 billion at the tender age of 23!
It appears that Snapchat is being courted by several investors, and now that knowledge of a huge offer from Facebook is on the public table, the company hopes to obtain a better offer from someone else. Up until just last month the company was based in a beachfront house in Venice Beach, California. Now it could be headed for the big leagues and a home in the Silicon Valley, depending on who decides to shell out enough cash to purchase it.
Snapchat is an application that allows users to text and send photos via its instant messaging feature. The difference between Snapchat and most photo sharing apps is that the pictures and messages disappear after they have been viewed, which makes it very popular among teen agers. This feature, combined with its ease of use makes the app one of the hottest items on the market now, and Facebook was hoping to cash in on the hype surrounding it. However, it appears that Zuckerberg will have to either fork out more cash, or find another app to take over, because Snapchat has completely snubbed the offer.