Image messaging service Snapchat has seen an offer to be bought out by social media giant Facebook with a bid amounting to $3 billion (£1.9bn), according to The Wall Street Journal. Snapchat opted against Facebook’s offer however, discarding it much like the millions of images sent through its service every day.
Had Snapchat accepted, the purchase would have been Facebook’s largest ever, eclipsing that of Instagram which Facebook bought for just shy of $1bn. What has troubled many analysts however, is why would anyone want to buy a company with zero revenue streams for such a large sum?
The reason? Facebook’s influence amongst teenagers has been diminishing. Snapchat, on the other hand, has made huge inroads in this area; Facebook see’s Snapchat’s service as a way of recapturing the attention of younger users, who have grown tired of its service.
According to sources speaking to the WSJ, Snapchat co-founder and CEO Even Spiegel won’t consider an acquisition or further investment in his firm at least until early 2014 however. It is expected the service, which already sees over 350 million images sent through it every day, will have grown even further by then, justifying an even larger evaluation.