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Facebook Who? Google Reportedly Offered 4 Billion for Snapchat

By Anthony Thurston on November 15th 2013

snapchat

We first learned earlier this week about Facebook’s attempt to purchase Snapchat for 3 Billion, and just like the rest of you we responded with a “W..T…F..”. Not only was the offer by Facebook way more than I would have ever would have guessed snapchat was worth, but the fact that Snapchat had the gall to turn down such an offer baffles me.

Now we are learning that Facebook was not the only offer on the table, apparently Google jumped in the mix too with a 4 Billion offer to outbid Facebook. Snapchat reportedly turned that down as well. In case you are wondering why these two giant companies would be interested in paying such a premium dollar for a small mobile phone app which has no revenue take a look at the graphic below:

Social Image Sharing

According the the report had it been successful in purchasing Snapchat Google would have kept the app standalone – much like what Facebook has done with Instagram. It would have continued Google’s attempt to out “Facebook” Facebook with their Google Plus network, so where Facebook had Instagram – Google would have had Snapchat, a much bigger catch if you ask me.

I still can’t believe that Snapchat turned this kind of money down. I mean sure, you lose control of your company, but 4 Billion dollars? That is some serious money – more than any one person needs in a lifetime that is for sure. Just think of all the daily deals you could purchase with just 1 percent of that money.

What are your thoughts on this news? Are Facebook and Google nuts for offering this kind of money or is Snapchat really a goldmine waiting to happen? share your thoughts in a comment below. 

[via The Verge]

Anthony Thurston is a photographer based in the Salem, Oregon area specializing in Boudoir. He recently started a new project, Fiercely Boudoir to help support the growing boudoir community. Find him over on Instagram. You may also connect with him via Email.

9 Comments

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  1. formal dresses under 20 dollars

    Music began actively playing when I opened this webpage, so annoying!

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  2. delete snapchat

    The 3 Billion is a mere prospective buying price. And it’s not a number that was made up all whilly-nilly. Revenue isn’t the only item that’s considered when companies make a buy-out offer. Many times companies (Facebook in this case) forecasts the potential profit of a business (Snapchat in this case). They look at the companies assets, opportunity, business environment, growth, and potential return too! They see that Snapchat has soooo much potential that they are willing to pay said amount of money. And if they’re willing to pay 3 Billion than they are anticipating making wayyyy more off of it once they acquire it. Perhaps they see a future merger, greater advertising revenues, or opening it on the stock exchange (this alone could make plenty of money, if its successful). Long story short, just because a company has no revenue does NOT mean is doesn’t have any potential, and that is why Facebook is willing to pay.

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  3. joshua birge

    Wow… Bad move snapchat I would of took 4billion and had my companie become apart of one of the most secsessful companies in the world! I mean its Google for god sake! Everything they touch turns to gold, give or take a few projects. What you lose in control you gain in money and the peace at mind that a super companie is now running the shots and your legacy will become legend. (Dramatic voice)

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  4. Hanssie

    I still don’t understand what Snapchat is used for haha.

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  5. Topher Kelly

    I’m with you Anthony. My response was “WTF!” as well. I’m not sure what they think their new round of funding will do, but I doubt it will make them worth 4 Billion. Why would you not take $4B and live a stress-free life or you live in fear that your technology may soon be obsolete? The only reason FB wanted Snapchat was to gain some traction with teens, an area where they are slipping. I have no idea why Google would want to throw 4B

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