Facebook had offered the all new app Snapchat $3 billion for acquiring the company. Although the refusal shocked many the Snapchat CEO, Evan Spiegel seemed to be content with his decision and he was very sure that he didn’t want to sell his app to the social media giant Facebook.
Spiegel says, “There are very few people in the world who get to build a business like this. I think trading that for some short-term gain isn’t very interesting.” Although the short term gain was not that small still the CEO found it not promising enough. In case Spiegel would have accepted the deal he and his co founder would have got $775 million each.
The deeper reason for the decision, at least according to the Forbes profile, is that Snapchat’s founders sensed weakness and opportunity. Even after a lot of trying, Facebook CEO, Mark Zuckerberg could not scare or convince Spiegel to go ahead with the deal. Snapchat has since raised another $50 million at a reported $2 billion valuation which is less than Facebook’s reported bid, but getting there.
It is not long enough when Snapchat will realise whether it was a mistake not to take Facebook’s offer or it was a blessing in disguise.
via SocialAppsHQ Blog http://www.socialappshq.com/blog/2014/01/07/snapchat-gives-facebook-the-answers/
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