TORONTO – Photo messaging start-up Snapchat has reportedly turned down a US$3 billion takeover bid from social networking giant Facebook, according to the Wall Street Journal.
Citing people familiar with the matter, the Wall Street Journal reported Wednesday that Facebook’s all-cash deal was rejected alongside an offer from Chinese e-commerce company Tencent Holdings that would have valued the company at $4 billion.
The report suggested that Snapchat co-founder and CEO Evan Spiegel is holding off on any acquisitions until early next year, in hopes that the company can grow its user base and spur a larger offer.
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In September, the two-year-old company announced that the platform sees 350 million “Snaps” a day – up from 200 million in June – and continues to grow.
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The app has gained fame in the social networking world because of its unique service – messages that self-destruct. Users can send each other pictures and videos with an expiry date ranging from 1 to 10 seconds.
WSJ said that Facebook offered up $1 billion at an earlier unspecified date, before going back to Snapchat offering $3 billion or more.
The deal would have been Facebook’s largest acquisition to date, trumping the $1 billion takeover of photo-sharing app Instagram in 2012.
Snapchat raised $60 million from investors including Institutional Venture Partners in June, valuing the company at $800 million.
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