

Snapchat turned down more than $3B from Facebook - chrismjelde
http://www.usatoday.com/story/tech/2013/11/13/report-facebook-offered-snapchat-3-billion/3517929/

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myronbolitar
There are two sides to this.

I understand Facebook's strategy trying to stay on top of the mobile social
game and remaining relevant to young users.

While I value Snapchat from Facebook's perspective, I think Snapchat itself is
now in a tough spot. They're going to raise money at a valuation higher than
$3b, and soon enough, the pressure will be on to start generating revenue.
It's funny - people give social apps like Snapchat a hard time about not
making any money, but if they tried to monetize right now, they'd look like
idiots for thinking they're worth $5b or whatever, because the revenue would
be peanuts in comparison. They're better off literally not making anything for
the time being.

There's no way they'll ever get $3b out of that business without selling out.
Maybe they think FB or someone else will be back with a better offer. I'm not
sure that gamble was worth the risk.

