Snapchat Refuses Multi-billion Offers From Google & Facebook
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Snapchat Refuses Multi-billion Offers
Facebook has tried and failed to claim the popular messaging app Snapchat. Last year, Facebook offered the company $1 billion dollars, but the company refused their offer. Recently, Mark Zuckerberg offered Snapchat $3 billion dollars cash. The CEO of Snapchat, Evan Spiegel, has released a statement saying they are not considering selling the company at this time. He also said he would be willing to talk about a sale in 2014.
The offer is tempting, but Snapchat wants to wait a year in hopes of their profits increasing. Facebook decided to make competition for the company by creating a similar app called "Poke." The app created by Facebook was a dud.
Snapchat is a popular messaging service. Its popularity is due to being able to send photo messages, videos, and text messages that disappear within a certain time frame. The app is popular among young people who mostly use the app for sexting.
The service has surpassed the popularity of social networks. Snapchat is happy to be the leader in a new area of social media. The app is continuing to grow, and the company might consider negotiating with potential buyers next year.
Facebook currently has 1 billion active members who log on using a computer device. The company has 5 billion active members who access Facebook from their phone. If Facebook acquires Snapchat, they will increase their mobile ad revenue. It should also be noted that Facebook rejected a $1 billion dollar offer from Yahoo when it first hit the social media scene. Google has also offered to buy Snapchat for $4 billion dollars. Their offer was rejected by Snapchat.
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