It is very hard to believe that a growing company has rejected a lucrative offer. Snapchat a
rapidly growing messaging service recently turned down a billion dollar cash acquisition offer
from Facebook. The brief matter is discussed down stairs.
How instant messaging is getting popular
Instant messaging is immensely popular now a day. We can easily access it through the help
of smart phones. Snapchat specializes in ephemeral instant mobile messages. Not only text
quotes or friendship quotes but you can also send photographs or short videos with it. The
whole process has not generated any revenue. Once you download the application in your phone,
whether it is android or iPhone. You can easily send messages to friends. The unique key feature
of the app lies in, whatever you have shared can be removed after certain period of time. And
you can handle or choose the recipients of your pictures.Sweet Dummer Time Catch Me If You Can
People’s preference about social media
A recent study report shows that teenagers and young adults are showing preferences towards
the instant messaging services instead of Micro blogging sites. Facebook is interested to buy
snapchat because of it allows the instant sharing option very quickly. Now a day users are
tapping the instant message service through smart phones, where messaging is a core function.
Large portion revenue of Facebook is coming from mobile advertisements. Facebook had offered
money to snapchat and intended to buy them for more than one billion dollar. Facebook wants
to grab the rapidly increasing users of snapchat. So in recent time they have approached once
again to them. In recent weeks Facebook officials contacted Snapchat again to discuss on the
same matter. At the initial meetings they have also offered at three billion or more. In recent time
it is the highest bid from Facebook, and it would be the largest acquisition from the company.
They have also offered nearly one billion dollar deal to buy Instagram, a photo sharing social
networking site in 2012. But the deal which had offered to Snapchat is merely near about three
times extra to the previous deal. But the Snapchat officials disdained the lucrative offer.
Funds for snapchat
Recent data shows that in June, Snapchat raised sixty million U.S. dollars from the investors.
If we include the revenue through the Institutional Venture partners the roundabout figure
will touch near about eight hundred million. This is also the round value of the company. The
company officials also claimed that after three months the snapchat app users would be doubled
nearly. They consume three hundred and fifty million messages or “snaps” daily basis.
It is seriously hard to believe that The 23 years old CEO of only two year old company with no
revenue has rejected a $3 billion buyout offer. Co founder of snapchat Mr. Evan Spiegel has
confirmed the news of spurned an all cash offer from Facebook. Chinese Internet giant Tencent
Holding’s company also had offered to lead an investment that would value Snapchat at $4