November 14th, 2013
07:38 AM ET

Snapchat Founder Turns Down $3 Billion

Snapchat lets users send photos that last only for moments, but investment analysts believe the social media company's future will be long-lasting.

The young founder, CEO Evan Spiegel, 23, just turned down three billion dollars for it.

Facebook reportedly offered the all-cash, multi-billon dollar acquisition deal, only to be rebuffed.

Brett Larson, host of "Techbyes," weighs in saying,  “I think what happened was he waited ten seconds and the Facebook deal went away.... No, I think he's waiting around to see who's going to bring the better deal.”

Larson explains, “Snapchat is this explosively popular messaging service that lets mostly teenagers communicate in short messages and photos and videos that only last for ten seconds.”

“And that’s what they love about it,” Chief Business Correspondent Christine Romans adds. “Facebook needs young people and that’s why it was a multi-billion dollar offer.”

Romans explains the possible strategic reason why Spiegel refused the deal.

“They must think they could get more or they're going to do another round of funding that’s going to give the owners and the founders more of a stake if they would eventually go public, maybe they could get even more money than this.”

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soundoff (2 Responses)
  1. Mike

    I would like to point out a few pieces of misinformation provided in this video. Firstly, Snapchat users generate 300-400 million messages PER DAY, not aggregate. Secondly, Facebook has already created a product to compete in this space called Poke (iOS only) and it has not been very successful.

    November 20, 2013 at 12:13 pm | Reply

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