Facebook's $3 Billion Offer Rejected By Snapchat
Snapchat is a rapidly growing messaging service where users take photos, record videos and text. Users then set a time limit of one to 10 seconds for how long the recipient can view the “snap.” The service has not generated any revenue, but has become extremely popular amongst teenagers and adults.
Facebook is interested in Snapchat to diversify its business across several social media and messaging platforms, as its Facebook platform appears to be losing users from the core teenager market. Facebook bought Instagram in 2012 for $1 billion.
Facebook is competing with Tencent, a diverse Chinese Internet to acquire Snapchat. The Chinese company offered to lead an investment that would value the company at $4 billion.
Snapchat reported its July daily usage includes 350 million “snaps”, up from 200 million in June.
Snapchat marks the second major profiled company to decline being acquired by Facebook. Earlier this year, Israeli-based mapping service Waze tied knots with Google (NASDAQ: GOOG) after declining Facebook's offer.
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