Snapchat Turns Down US$3 Billion from Facebook
Snapchat, for those not in the know, is a messaging app that allows users to write or draw on photos and then share them with friends before the images are automatically erased in ten seconds or less. Now, Facebook has been reported to have offered US$3 billion in an all-cash deal for the company, which has been turned down by Snapchat.
It seems that Snapchat may be holding out for a better valuation as it is also being courted by other parties looking for a potential acquisition. Tencent Holding for example, a Chinese e-commerce giant, has valued the two year old company at US$4 billion.
The year of 2013 seems to be going well for Snapchat. They finally released an Android version of their application back in February 2013. In June 2013 they grabbed a round of US$60 million investment and were valued at US$800 million on the whole.
Now, before the year has even ended, their stock seems to have skyrocketed. However it is believed that Snapchat's 23 year old CEO, Evan Spiegel will not be considering any bids for acquisition until early 2014.
Source: Wall Street Journal