Teen favourite Snapchat rejects $3bn Facebook bid
Snapchat has no revenues, no profit and no business model
MOBILE messaging startup Snapchat rejected an acquisition offer from Facebook that would have valued the company at $3bn or more, according to a Wall Street Journal report.
Facebook representatives reached out to Snapchat in recent weeks to discuss the all-cash deal, which would have been Facebook's largest acquisition ever, the report said, citing anonymous sources.
The offer was rejected by Snapchat chief executive and co-founder Evan Spiegel (23), a Stanford University dropout.
Snapchat, which allows consumers to send smartphone photos which automatically disappear after a few seconds, has proven popular among teenage users.
However, it has no revenues and no business model.
The report of Facebook's interest in Snapchat comes a couple of weeks after Facebook, the world's No. 1 Internet social network, acknowledged that it was seeing a decline in daily use by young teenagers in the U.S., although it said overall use by teenagers was stable.