karen evenson

It seems that the rapid user growth and increased enthusiasm in new messaging applications are

bringing in billion dollar take-over offers for some new yet growing companies. But are they

accepting such offers all the time? That might be a question that is being discussed in the Start-

up and application industry. Snapchat, a messaging service that was started in 2011 by Evan

Spiegel, 23 and Bobby Murphy, 25, have recently turned down a take-over offer of $13 billion.

According to the owners, Snapchat is gaining rapid popularity and hence accepting such an

offer now, might not be financially wise. They are hoping that they might receive better offers in

future as the company will achieve more popularity.

The idea to attract deals

Snapchat started its service in 2011, it is a messaging application that allows its users to send

pictures and messages that disappear immediately after they are viewed. This feature made this

application an amazing platform to send sexually arousing pictures and videos resulting in

immense popularity. This made the company one of the most sought after among the tech

companies and grabbing attention of the large heads of the Silicon Valley and even International

companies. There have been many such success stories in this industry which have been

exemplary. Many companies have turned down some big money and reached the apex of success

later, Facebook and Twitter to name a few. There also have been some business ideas who

promised a lot in the beginning but could not fulfil the dreams and lost the momentum before

they could reach a situation to bring the cash.

Reason not to agree

Mr. Spiegel mentioned the main reason behind not going for such a deal is that Snapchat has

increased its user count to great extent this year. Snapchat is such an application that eliminates

the point of permanence. There is no situation which proves to be embarrassing for the users as

no previous pictures or videos could ever pop-up out of nowhere. The rapid growth of Snapchat

has held the owners from selling this great idea and made them wait for a worthier suitor in the

future. They have turned down an offer from Facebook to mention the greats and they believe

that they can take Snapchat to the next level where the revenue earned can go beyond the

dependence on the advertisers. Mr. Spiegel has been heard saying that he wants to parallel the

success of some overseas messaging applications like Wechat and Line.

The meetings continue

After being turned down by Snapchat, Facebook started a new application called Poke. This

application never managed to start any waves as such, even the standalone messaging application

of Facebook called ‘Messenger’ struggled big time during the days of establishment. The

Chinese tech giants also seem very interested in Snapchat. Tencent, a giant of the tech industry

in China is one of the suitors for Snapchat. Pony Ma, one of the founder members of Tencent

mentioned the situation of constant tension while taking about his interest towards Snapchat, in

September. The current scenario shows that the suits and the meetings are reported to continue

for the coming time, but it is for the industry to see what the future of Snapchat is going to be.

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