Snapchat reportedly spurned Facebook's $3 billion advances

Post splurging $1 billion to shock-purchase Instagram last year, Facebook seems to have the itch to acquire more applications that...

Nishtha Kanal|Nov 14, 2013, 11:55:08 IST

Post splurging $1 billion to shock-purchase Instagram last year, Facebook seems to have the itch to acquire more applications that can help bolster its portfolio. It has now been reported that Facebook was spurned by Snapchat as it tried to acquire the self-destructing message app for a cool sum of $3 billion.

A report in The Wall Street Journal has shown that Facebook made an offer of “$3 billion or more” to take home Snapchat, but with the two-year-old service being wooed by other investors, it was rebuffed. Tencent Holdings, WeChat’s parent company, has reportedly offered to lead an investment that will value Snapchat at $4 billion. Not so safe after all?

Poking Snapchat

The report comes as a bit of a surprise, showing that Snapchat CEO Evan Spiegel believes that the service is worth a lot more than what Facebook seems to be offering. It has been suggested that Spiegel is holding out on any offers he’s been receiving till early next year, at least. It is also interesting to see Facebook aiming to take over Snapchat, after it has made an attempt to take on Snapchat in the past.

More from News Analysis

Facebook had earlier launched a stand-alone app called Poke that worked on the same self-destructing message formula of Snapchat. After an initial period of intrigue, users seem to have given up on Poke, just like Facebook has. The app has received little to no attention since after its launch, showing that it has been one of those experiments for Facebook to let go. However, with the talks of the Snapchat acquisition, Facebook could either have Poke’s resurrection or Snapchat becoming an Instagram-like property for Facebook. Spiegel, though, seems to have poured water on Facebook’s plans.

While neither Facebook nor Snapchat have confirmed this news, the startup seems to be looking at widening its horizons by courting investors for now. With figures like 350 million messages being sent in September and a 100 million users in tow, Snapchat has a great report card to show off.

By Nishtha Kanal

Intrigued by all things social, Nishtha will invariably tweet about you. When not tweeting or writing about the next viral video, you will hear her proclaiming her love to Metallica, James Hetfield, Opeth, Akerfeldt and all bands that go 'growl'. She also obsesses about ACP Pradyuman and South Park and you will always find her moving around with a book. Her focus is on all the happening stuff in the tech domain, and she won't hesitate to take a shot at some of the oddball devices that make their way to our labs.