November 13, 2013 5:31 pm

Snapchat turned down $3 billion takeover offer from Facebook: report

Snapchat CEO Evan Spiegel poses for photos, in Los Angeles.

AP Photo/Jae C. Hong

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.

Story continues below

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.

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.

Read More: Forensics firm finds photo retrieval loophole on Snapchat app

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.

© 2013 Shaw Media

Report an error


Want to discuss? Please read our Commenting Policy first.