Today, Snapchat co-founders and former Stanford undergraduates Evan Spiegel and Bobby Murphy rejected a $3 billion dollar all-cash acquisition deal from social networking conglomerate Facebook. According to reports,Chinese e-commerce giant Tencent Holdings had offered to lead an investment that would value two-year-old Snapchat at $4 billion. Snapchat currently doesn’t return a profit but is valued at around $3 to $4 billion dollars justified by investors and venture capitalists who are vying for the attention of Snapchat’s founders. People close to the situation claim that Spiegel and Murphy won’t be considering possible acquisition deals until the top of 2014 as the duo believe that the company still has room for growth given its rocketlike progression over past months (Snapchat currently processes 350 million messages a day). This isn’t the first time that Facebook tried to acquire the social media network as the company offered $1 billion acquisition offer earlier this year.
Facebook bought photo-sharing network Instagram in 2011 for $1 billion.
For those who aren’t familiar with the messaging app, Snapchat allows users to send picture/video messages to friends in their network for an allotted period of time before the message eventually “expires”. Whether or not Spiegel and Murphy sell Snapchat now or in the near future, it’s say safe to say that they’ll be financially secure for sometime.
[Courtesy of The New York Times]