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.