Snapchat: Photo-sharing app rejects Facebook's $3bn acquisition offer
The two-year-old photo sharing app has experienced explosive growth amongst younger users but has yet to make any revenue at all
Photo-sharing app Snapchat has rejected an acquisition offer from Facebook for $3bn (£1.9bn) according to reports from the Wall Street Journal.
The news comes just weeks after news that the startup was valued at up to $4bn (£2.5m) with Chinese e-commerce giant Tencent reportedly offering to lead an investment round for the two-year-old company.
The app’s popularity has been attributed to its use of “ephemeral media”: content shared over Snapchat can only be viewed for a maximum of ten seconds before being automatically deleted off the recipient’s phone.
Although this mechanism is not perfect (various hacks exist and users can always just screenshot the images shared) the core concept has struck a chord with the younger generation and the app now claims to have more than 100 million users exchanging 350 million messages each day.
The company has so far made $0 revenue, but 23-year-old founder Evan Spiegel (above) is now speaking about ways to monetize the service. In conversation with the BBC’s Rory Cellan-Jones, Spiegel outlined plans to generate revenue from the app via user payments rather than advertising.
This would mean taking a very different tact to social media juggernauts such as Facebook and Twitter. Both of these services experienced explosive user growth before they went public and subsequently incorporated advertising to turn a profit.
A similar route is currently being taken by Instagram - another photo-sharing app with a strong focus on mobile users - that Facebook managed to successfully purchase for $1bn back in 2012.
Evan Spiegel of Snapchat attends TechCruch Disrupt SF 2013 at San Francisco Design Center on September 9, 2013 in San Francisco, California.
Life & Style blogs
The psychology of flirtation: how to know when someone's interested
YouTube star Loey Lane hits back at hateful comments about ‘fat girls in bikinis’ and how plus-size women promote obesity
Sugary drinks are killing 184,000 adults around the world every year, says study
The age of inactivity: How laziness is killing us
What do the emojis on Snapchat mean?
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
- 1 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 E.L James's #AskELJames Twitter Q&A didn't go exactly as planned
iJobs Gadgets & Tech
£20000 - £24000 per annum: Recruitment Genius: This established Simulation Tec...
£500 - £600 per day: Recruitment Genius: A Senior Solution Architect is requir...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This is an exciting opportunity for a Software...