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Snapchat Tells Facebook No
By: Jessica Cherok
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Is the president of Snapchat crazy? Because he just turned down a $3 billion offer from Facebook. Turned it down in the middle of a somewhat serious snafu in the company’s privacy permissions.

Evan Spiegel, Snapchat’s CEO, was on the cover of Forbes this month, detailing why he turned down Facebook’s offer. According to Spiegel, “There are very few people in the world who get to build a business like this. I think trading that for some short-term gain isn’t very interesting.”

Spiegel may also be one of the very few people in the world who find $3 billion uninteresting.

Though — surprisingly — he may have been right to turn up his nose at the deal. Snapchat's estimated earning potential is pretty high. The company consistently remains one of the top 10 most downloaded apps. And even though Facebook tried to scare Snapchat’s founders with the imminent release of Facebook Poke (an identical time sensitive photo-sharing service), they held out.

Wise move, especially now that Poke proved to be a total failure.

Facebook’s most famous acquisition thus far has been the $1 billion purchase of Instagram back in 2012. That purchase was largely to eliminate a competitor while beefing up its lackluster mobile app. Purchasing Snapchat would have relatively the same effect —  get rid of a competing photo sharing service and keep people on Facebook.

Will the refusal pan out for Snapchat? Only time will tell.

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About the Author
Jessica Cherok is an advocate for online privacy, campaigning for ethical data practices and the protection of personal privacy.
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