Well, we say cool, but $3bn is probably more like scorching hot offer from the social media giant for a photo messaging company with no business model and zero revenue. It's assumed Snapchat is holding out for a better evaluation as it focuses (geddit) on enhancing its brand further in its second year.
Well, we say cool, but $3bn is probably more like scorching hot offer from the social media giant for a photo messaging company with no business model and zero revenue. It’s assumed Snapchat Inc. is holding out for a better evaluation as it focuses (geddit) on enhancing its brand further in its second year.
The smartphone-friendly app was developed by 23-year old Stanford dropout Evan Spiegel, and it’s no surprise that Facebook bosses are looking to add it to its other acquisitions that include Instagram, bought for nearly $1bn 2012, after Snapchat announced that September saw 350m snaps taken per day, an increase from the 200m taken just a few months before.
The main lure of the rising app is that it offers users a way of letting others in on their real-time fun without incurring any permanent consequences. After taking a photo or video and sending it to fellow-users in their address books, the Snapchats then disappear into thin air after a maximum of 10 seconds – a hugely appealing aspect for young social media savvy individuals aware of the risks associated with posting content online.
Speaking to BBC News recently, Spiegel said the company was in plans to get users to pay for added value services in the not-too-distant future, but he didn’t want to “spoil the surprise” by explaining just how they’d go about actualising those ideas.
The report from the Wall Street Journal suggests that Snapchat has already had better offers from Facebook rivals, including Chinese Internet giant Tencent Holdings Ltd., which apparently offered to lead an investment valuing the company at an even more generous $4bn.
http://www.youtube.com/watch?v=r4237MZIb8g
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