Rejecting Billions, Snapchat Expects a Better Offer

Not my week to post, however saw this article about Snapchat. Since it has been mentioned several times in class and because, if you are like me, have no idea what Snapchat is I thought I’d share the link below.

“The service, started in 2011 by Evan Spiegel, 23, and Bobby Murphy, 25, two former Stanford fraternity brothers, lets users send photo and video messages that disappear after they are viewed. Snapchat quickly gained a reputation as an easy way to send sexually suggestive photos, but it also picked up steam as a fun and easy way to trade photo messages.” “Snapchat’s leaders think it might be one of the first social media companies in the United States to build its business largely around revenue beyond advertising.”

The article brings up WeChat and Tencent from China, Line from Japan, Kakao from Korea, WhatsApp, and Kik. The article also talks about the advantage Snapchat has over Facebook, which offers users (especially teenagers) privacy. There is a mention of Facebook’s similar product Poke and its stand-alone Messenger both of which have not gained traction.

David M. Chee


2 thoughts on “Rejecting Billions, Snapchat Expects a Better Offer

  1. I can send a picture or video and it disappeared after viewed!!! It is really interesting. I just know it, thanks to the article. I sometimes feel embarrassing for still not an active user of twitter, half-through this class.

    I think it is a wise business decision to reject the 1 billion deal. In most stock valuation models, the potential of development carries way much more weight than current profitability. Maybe that’s the reason why twitter has a better first-day trading performance than facebook.

    But as a simple person, if I could sell something for some money enough for my whole life, I would definitely make the deal and start to live a life I want, what ever it is. Speculating on stock valuation is not a sustainable business, I think.

  2. I think it was a stupid move not to accept the offer from Facebook. There is currently no way to monetize on Snapchat and this might be a trend. Teens are so fickle and ADD that they will probably move onto something else in a few months.

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