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Snapchat Says "Boo" to $3 Billion Offer from Facebook
Sean Pyles | Photo: Photo courtesy of flickr | November 13, 2013
Is it wise for Snapchat to hold off an acquistion? Or are they just blowing ectoplasm?
If, at 23 years old, you were offered 3 BILLION dollars for a company you started that has yet to turn a profit, would you turn it down? At an age when most people are still figuring out their first post-grad jobs and trying to make sure they have enough money to get drunk AND pay their rent, would you reject the prospect of life-long financial stability? Would you flee, like a ghost from a ghost-busting-vacuum, until something better comes along?
This morning, 23 year-old Evan Spiegel, CEO of Snapchat, the App Store's favorite dick-pic-sharing-turned-goofy-image-sharing app did just that. Zuckerberg and the gang at Facebook went to Spiegel for a second time, offering a cash buy-out for more than double what Instagram went for in 2010.
Just a week after Twitter's IPO and news that Pinterest was valued at $3.8 billion (also without making any money), Spiegel's rejection of the Facebook offer appears to be just a continuation of the trend of big-name apps earning big money despite having never produced any money themselves. And who can blame Spiegel? If you could make $3 billion at 23, why not hold off until you can make $4 billion at 24?
Still, from our point of view, Speigel is nuts. Let's just hope that the wait is worth it, and that Snapchat's dreams don't get zapped in the meantime.