Business Technology

Monday 20 November 2017

Teen favourite Snapchat rejects $3bn Facebook bid

Snapchat has no revenues, no profit and no business model

Snapchat is popular with teens
Snapchat is popular with teens

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.

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