Snapchat has rejected a $3 billion+ all-cash acquisition offer from Facebook, according to the Wall Street Journal, as well as a $4 billion bid from Google, prompting the Internet to let out a collective “Whaaaa????!?!”
To recycle everyone else’s complaints: Snapchat has no revenue, and is still struggling to establish a cohesive product vision. So what gives?
Greed is what gives….and I want to emphasize that in the most objective way possible. CEO Evan Spiegel thinks Snapchat should be worth more.
According to the WSJ, Spiegel “is hoping Snapchat’s numbers — of users and messages — will grow enough by [next year] to justify an even larger valuation.”
Facebook apparently approached L.A.-based Snapchat earlier this year with a $1 billion offer. Spiegel has also indicated that he will sell some of his own stock in Snapchat if the company seeks another investment round — guaranteeing he’ll come out of this lil’ adventure with at least some renumeration.