Snapchat Turned Down $3 Billion (!!!) from Facebook.

[MonkeyBizness]

This shit is insane. I'm waiting for the next internet/VC bubble to burst. And these kids who run Snapchat are gonna have to cough up plenty of dough to their 3rd partner they jerked.

http://valleywag.gawker.com/wsj-snapchat-turned-down-3-billion-from-facebook-1463808613/@sambiddle

WSJ: Snapchat Turned Down $3 Billion (!!!) from Facebook

A Wall Street Journal report says Snapchat's insane $4 billion valuation is already going to its head: the disappearing pic startup rejected a $3 billion buyout offer from Zuckerberg. Three billion in cash. Zero sense.

The offer, and rebuff, came as Snapchat is being wooed by other investors and potential acquirers. Chinese e-commerce giant Tencent HoldingsTCEHY -1.13% had offered to lead an investment that would value two-year-old Snapchat at $4 billion. Evan Spiegel, Snapchat's 23-year-old co-founder and CEO, will not likely consider an acquisition or an investment at least until early next year, the people briefed on the matter said. They said Spiegel is hoping Snapchat's numbers – of users and messages – will grow enough by then to justify an even larger valuation, the people said.

So, Snapchat turned down $3 billion in real money from Facebook because of the possibility of more billions in largely imaginary money—that's walking away from about three Tumblrs or around four Instagrams. But Snapchat considers itself worthy of more than $3 billion, for a company that has never generated a dollar of revenue in its existence. Teens, man—everyone wants those teens. We've been told Mark Zuckerberg personally tried to buy out Snapchat co-founder Evan Spiegel (who will likely die wealthy, buyout or no buyout) during a visit to his dad's house within the last year, but was rejected. Zuck is undaunted. Will he come back with $5 billion now? Twenty billion? A palace filled with furs and gems?

 

[water]

I wonder if these stories reach young black youth?


Wonder if they are being inspired?

Cause this shit is way more than sports & entertainment

 

[Rick Spanish]

Stupid.. They better cashout while they can, people are already getting bored with snapchat..

 

[p5ych3]

i'm out of the loop. i had to google snapchat.

 

[shaddyvillethug]

I wonder if these stories reach young black youth?


Wonder if they are being inspired?

Cause this shit is way more than sports & entertainment

for 3 million? nope

hold out for more

sales high and demand is high

 

[Better]

No words.

 

[Spectrum]

Was reading this one earlier. I knew they turned down one for a billion. That's kind of understandable considering their position and their ability to raise funds... but a 3 billion dollar all cash acquisition is a really crazy one to turn down.... they are pretty much now banking on becoming the next big thing (long-term) if they expect to build a business that is going to be valued more than 3 billion....and considering they delete their most valuable data, it's hard to see how they are going to build a real business on top of this. ....and anything above that amount means they will eventually need to IPO as only Google and Microsoft can afford to go above that range in terms of an acquisition.

 

[water]

for 3 million? nope

hold out for more

sales high and demand is high

billion shorty

 

[Mixd]

 

[Profit]

I hope they know what they're doing.

 

[shaddyvillethug]

billion shorty

nope

hold out for more

if there is 3 billy here

there is 10 billy over there

 

[MonkeyBizness]

Was reading this one earlier. I knew they turned down one for a billion. That's kind of understandable considering their position and their ability to raise funds... but a 3 billion dollar all cash acquisition is a really crazy one to turn down.... they are pretty much now banking on becoming the next big thing (long-term) if they expect to build a business that is going to be valued more than 3 billion....and considering they delete their most valuable data, it's hard to see how they are going to build a real business on top of this. ....and anything above that amount means they will eventually need to IPO as only Google and Microsoft can afford to go above that range in terms of an acquisition.

Couple of things:

The data isn't really deleted. There are online services that can retrieve the data.
They're not doing anything until their court case is resolved.
I can see how Instagram and Tweeter can create revenue, but what is SnapChat going to do? Off the top, I can't see a viable business model. Advertising? Other than an ad with a call-to-action available for a limited period of time with a hotlink, what are they going to do?

VCs are out of their fucking minds these days.

 

[Teknique310]

Every single teen or college aged kid I ask in my unofficial survey uses Snapchat. Every single one !

You hot & people want it. Bidding war. That headline benefits Snapchat not the other way around. Some giant will come along & offer more.

I know the guys that founded Youtube are like WTF.

Dont wait to long ...

 

[Spectrum]

Couple of things:

The data isn't really deleted. There are online services that can retrieve the data.
.

I think you misundestood my point or I didn't express it clearly. They aren't storing those images and messages on their servers. They can't use the data to create an ad network around user data. That has been the major story around the "valuation" because inherently, the users have less value or no value (in terms of monetizing through advertising) as they can't build a data profile around the users (like facebook, twitter, and google).

 

[largebillsonlyplease]

3 billion cash in hand
You have to take that.
And then use the money to do your next big thing i understand it's his baby but 3 billion is 3 billion..driven by wanting recognition i get that
But shit have the ego to believe you can cash out and do it all over again
If the tech community tries to play you out and say you're a one hit wonder
You respond with "yea but i knocked that bitch out of the park"

 

[water]

Every single teen or college aged kid I ask in my unofficial survey uses Snapchat. Every single one !

You hot & people want it. Bidding war. That headline benefits Snapchat not the other way around. Some giant will come along & offer more.

I know the guys that founded Youtube are like WTF.

I know one of the guy that founded youtube.

He is in China working on some other things


He is chilling

 

[Spectrum]

They're not doing anything until their court case is resolved.

I don't think that's the reason why they turned this down though. Acquired companies have been in MUCH more precarious situations and have accepted offers (Youtube comes to mind but they absolutely couldn't remain independent for much longer without raising cash. Google was the best option for them.

That legal situation is going to end with them paying the other cofounder something substantial. They cut him out but he was a real cofounder in every way imaginable and he has a paper trail. They're wrong for trying to completely fuck him over like that. He would have taken an olive branch too but they tried to leave him with NOTHING.

 

[john blackcorn]

i dont see the lasting appeal of snapchat. yall remember when voxer was the hot shit at the moment? EVERYBODY i knew was on voxer. now who uses it? i see the same thing with snapchat. ive downloaded and deleted snapchat about 4 times. it just has no appeal to me, although everyone uses it

i think the founders are stupid as fuck for turning down 3 billion in CASH!! because personally i dont see that value going up much higher, and if it does it wont be for long

 

[john blackcorn]

i dont see the lasting appeal of snapchat. yall remember when voxer was the hot shit at the moment? EVERYBODY i knew was on voxer. now who uses it? i see the same thing with snapchat. ive downloaded and deleted snapchat about 4 times. it just has no appeal to me, although everyone uses it

i think the founders are stupid as fuck for turning down 3 billion in CASH!! because personally i dont see that value going up much higher, and if it does it wont be for long

 

[Spectrum]

Every single teen or college aged kid I ask in my unofficial survey uses Snapchat.

They have the 20 and under crown on lock. The 20 and under crowd is not using facebook as much so the acquisition makes perfect sense for facebook...in the same way that instagram made sense.... but 3 billion is a lot.... if that number is true, I wouldn't be surprised if they ended up regretting that OR they're working on something significant that VCs are confident will take them to the next level because of Facebook really offered 3 Billion, 99 percent of the time the VCs would force that deal to be done whether the founders wanted to or not.

 

[water]

They have the 20 and under crown on lock. The 20 and under crowd is not using facebook as much so the acquisition makes perfect sense for facebook...in the same way that instagram made sense.... but 3 billion is a lot.... if that number is true, I wouldn't be surprised if they ended up regretting that OR they're working on something significant that VCs are confident will take them to the next level because of Facebook really offered 3 Billion, 99 percent of the time the VCs would force that deal to be done whether the founders wanted to or not.

 

[Spectrum]

i dont see the lasting appeal of snapchat. yall remember when voxer was the hot shit at the moment? EVERYBODY i knew was on voxer. now who uses it? i see the same thing with snapchat.g

That's a really good example. Snapchat has gotten bigger than Voxer...it's way more mainstream but the similarities are striking

 

[MonkeyBizness]

I think you misundestood my point or I didn't express it clearly. They aren't storing those images and messages on their servers. They can't use the data to create an ad network around user data. That has been the major story around the "valuation" because inherently, the users have less value or no value (in terms of monetizing through advertising) as they can't build a data profile around the users (like facebook, twitter, and google).

Gotcha. Yeah, the move toward programmatic advertising is useless with SnapChat.

I know one of the guy that founded youtube.

He is in China working on some other things


He is chilling

Chad what's-his-name created MixBit and that's floundering.

That's a really good example. Snapchat has gotten bigger than Voxer...it's way more mainstream but the similarities are striking

There are a ton of messaging apps out there - KakaoTalk, Viber, LINE, MessageMe, WeChat and WhatsApp – and some of them will be a M&A target while some will die off, while others will develop revenue streams or pivot into something else.

Re: the lawsuit. Yeah, they fucked homey over and got super greedy. The evidence against them is substantial. I'm sure their board will push for a settlement quickly.

 

[water]

Gotcha. Yeah, the move toward programmatic advertising is useless with SnapChat.

Chad what's-his-name created MixBit and that's floundering.


There are a ton of messaging apps out there - KakaoTalk, Viber, LINE, MessageMe, WeChat and WhatsApp – and some of them will be a M&A target while some will die off, while others will develop revenue streams or pivot into something else.

Re: the lawsuit. Yeah, they fucked homey over and got super greedy. The evidence against them is substantial. I'm sure their board will push for a settlement quickly.

You are good

They actually created a company called AVOS which is the platform Mixbit is on.


Is more than mixbit though

 

[Punch]

Put it in perspective Take the 3 Thousand Million, cause thats what it is, stop worrying about how much somebody else is gonna make. 3 Billion is unfathomable for an idea that wasnt even born out of something physical that required manufacturing...take that bread and go live it up.


BTW this is some real motivation for those with good ideas...we should start a what are you doing to get rich thread (bread crumbs)

 

[MrBee]

i'm out of the loop. i had to google snapchat.

Word...

 

[MonkeyBizness]

You are good

They actually created a company called AVOS which is the platform Mixbit is on.


Is more than mixbit though

The YouTube guys need to look at Ev Williams with Medium and Jack Dorsey with Square to see how to create another billion dollar idea.

Square will go public next year. PayPal will do everything in their power to compete, but SMBs love Square. If Square gets further integrated into cities across the US (NYC Taxi & Limo), they'll be unstoppable.

Sidebar: Uber is going to be a beast as well.

 

[TruDat]

I wonder if these stories reach young black youth?


Wonder if they are being inspired?

Cause this shit is way more than sports & entertainment

bruh I couldnt have said it better myself

This turning down $3 Billion in cash

 

[DaAssWatcher]

I wonder if these stories reach young black youth?


Wonder if they are being inspired?

Cause this shit is way more than sports & entertainment

Yeah man it should.Hell a lot of teens like engaging in attention whoring social networking sites and activities.If they knew how to program I have no doubt that some in that group would be able to roll out tha next best "look at me" site.

 

[NewyorkRealTalk]

I would of took it.

Sent from my Nexus 7 using Tapatalk 4

 

[playahaitian]

I wonder if these stories reach young black youth?


Wonder if they are being inspired?

Cause this shit is way more than sports & entertainment

church....

i WILL be sharing this with my nieces and nephews.

 

[TruDat]

what is interesting over 7 years ago
Yahoo tried to purchase facebook for over $1 billion
and Zuckerberg rejected their offer

shit viacom tried to buy facebook for over $750 million

2nd thought maybe snapchat got other interests
from google or other big companies
I aint mad at em

 

[Varis]

Where are the naked snaps?

 

[MonkeyBizness]

what is interesting over 7 years ago
Yahoo tried to purchase facebook for over $1 billion
and Zuckerberg rejected their offer

shit viacom tried to buy facebook for over $750 million

2nd thought maybe snapchat got other interests
from google or other big companies
I aint mad at em

Zuckerburg had a plan with Facebook and it worked.
MySpace wanted to be acquired.
Instagram wanted to be acquired.
Twitter didn't know what it wanted, but decided to go public because they felt that had a sustainable business.
Pinterest is trying to develop a sustainable biz model. Who knows? They got a shitload of VC dough and I'm sure they're trying to figure out their plan while shit is still hot.

SnapChat doesn't seem to have a business plan nor any sort of real revenue stream. The smart thing to do is sell while shit is still hot before people realize that the company can't be profitable. They would be a nice added value to the Facebook value proposition. Take the dough and start a new company.

 

[Grimes]

They're trying to be like Zuckerberg, but with a product that literally evaporates after 10 seconds. I dunno.....