Rachelle Radford


Speculation of reason why the bid of Facebook was rejected by Snapchat

How does company reject cash bid of social media giant, who has no revenue as such? This

is question that is revolving around the minds of business analyzers all over the world. Yes,

you guessed it right; I am indeed talking about the deal of Facebook which was rejected by the

Snapchat. And Facebook being one of the media giant, the reason behind the rejection of the

huge cash bid is still in process of speculation.

The company is in rumors of having talks with many of the leading company and the amount

of investment is huge. The question that arises is how does a company who aimed to transfer

the images, videos and messages, is estimated to have no revenue from any of the sources? But

recently it is said big companies like Yahoo and others are showing interest to utilize the huge

fan base of Snapchat, in lieu of money and technical support.

Reason behind the rejection of bid

Facebook is definitely a social media giant, it has also got media rivals, and one of them is

Snapchat. To have a financial deal among the media rivals might always not be beneficial,

because the both might not have the same plans in the upcoming years, and the company with

the more financial stability will have the final say. This might be a reason for the rejection of

Facebook’s bid by Snap chat. Apart from that the company too has many other reasons for the

rejection of bid:

• The money that Facebook that has offered to Snap chat, might not be one to benefit the


• The exposure of Snapchat might be less if they go in collaboration with much bigger

social media company.

• Facebook has bought many social media company like Instagram, Whats App which

didn’t have a positive impact of the fan base. Seeing this Snap chat might have turned

down the bid.

On the question of exposure

Like every people, social media companies also will want to have an inter-dependence and

chance to earn his own fate in competition with the rivals, and Snap chat might also have has

similar plans. With such a unique feature’s tally that allows transferring of pictures, videos and

instant messages, which vanished after a stipulated time of visualizing of the same called the

snaps. It is sure that, it will be a tailor made application for the youth, who are well equipped

with the fast pace of life.

And many of the advertisers will also target the youth, which will be beneficial for the app to

earn revenue that would not have happened if the bid of Facebook was not grasped by Snap


To sum up

People all over the world are speculating on what might be the reason that Snap chat has

rejected the cash bid of a media giant like Facebook? The answer hasn’t officially come out from

any of the parties related to the bidding process, but the some has speculated that the lack of

exposure and monetary ground might have been the sticking force behind the rejection of the bid.

snap chat