Market Overview

Facebook's $3 Billion Offer Rejected By Snapchat

Facebook's $3 Billion Offer Rejected By Snapchat

The Wall Street Journal reported on Wednesday that Facebook (NASDAQ: FB) prepared a $3 billion bid for Snapchat, but was rejected by the company.

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.

Related: Who Would You Rather... Facebook or Twitter?

Evan Spiegel, the company's 23-year-old co-founder indicated he is not interested in an acquisition or an investment until early next year. Spiegel is hoping to grow the company in terms of users in order to command an even higher valuation.

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.

Posted-In: Evan Spiegel Instagram SnapChat TencentNews Offerings Tech Best of Benzinga


Related Articles (GOOG + FB)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at