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.