Snapchat Supposedly Turned Down a $3 Billion Acquisition Offer from Facebook

By DL Cade


When Facebook spent the staggering amount of $1 billion on the Instagram acquisition, people the world over thought they were crazy for throwing that kind of money on an app that, at the time, hadn’t generated any revenue.

Well, that acquisition turned out pretty well for CEO Zuckerberg, who has since allegedly turned his sights on Snapchat, only to have an even more ludicrous offer spurned. How much more ludicrous, you ask? Apparently, Snapchat recently turned down a $3 billion offer from the social media giant.

The report comes from The Wall Street Journal, whose sources claim that this …read more

Via: Petapixel

Marco | Editor

Editor at large and founder of a bunch of stockphoto businesses

One thought on “Snapchat Supposedly Turned Down a $3 Billion Acquisition Offer from Facebook

  • November 17, 2013 at 5:32 am

    The 3 Billion is a mere prospective buying price. And it’s not a number that was made up all whilly-nilly. Revenue isn’t the only item that’s considered when companies make a buy-out offer. Many times companies (Facebook in this case) forecasts the potential profit of a business (Snapchat in this case). They look at the companies assets, opportunity, business environment, growth, and potential return too! They see that Snapchat has soooo much potential that they are willing to pay said amount of money. And if they’re willing to pay 3 Billion than they are anticipating making wayyyy more off of it once they acquire it. Perhaps they see a future merger, greater advertising revenues, or opening it on the stock exchange (this alone could make plenty of money, if its successful). Long story short, just because a company has no revenue does NOT mean is doesn’t have any potential, and that is why Facebook is willing to pay.

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