Snapchat turns down $3 billion offer from Facebook

FB had earlier approached Snapchat with a $1 bn acquisition proposal.

Houston: Feeling the pulse of teenagers' inactivity on its social network, Facebook has dangled more than USD 3 billion in cash to woo Snapchat, the popular photo-messaging start-up used by younger audiences.

However, the Los Angeles-based messaging app company, founded by 23-year-old Evan Spiegel, recently turned down the offer because it's currently being courted by multiple investors, according to a source familiar with the matter.

The 2-year-old Snapchat has been approached with offers including an investment from China's Tencent Holdings that would value the start-up at USD 4 billion.

Snapchat's mobile app allows people to send text and photos that disappear in what has been hailed as all the rage in a next wave of private social sharing.

According to various media reports, Facebook made an offer of "USD 3 billion or more", but Snapchat co-founder Evan Spiegel is opting to wait until 2014 in hopes of a better valuation for the company.

In October, Wall Street Journal put out a similar report, claiming that Facebook had offered to acquire Snapchat for USD 1 billion.

Still another report in October indicated that Snapchat was looking to raise a round of funding that would value the company at roughly USD 3.5 billion.

Snapchat has joined the list of tech companies — like Tumblr and Instagram — with no money coming in but multiple sky-high takeover offers. So far, Snapchat’s leaders have balked at the offers in the hope of landing an even more lucrative deal.

( Source : PTI )
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