Yahoo! bought Tumblr for $1 billion. Facebook bought Instagram for $1 billion. It's a nice, round number for tech companies that have value but no real profits. But the Wall Street Journal reports Facebook coveted Snapchat so much they offered $3 billion, in cash, for the disappearing messaging app. The Snapchat guys told Facebook to take a hike.
Turning down $3 billion takes a lot of balls, something the Snapchat founders have in spades apparently. Others may contend they lack something equally important: brains. Turning down $3 billion when your company makes no revenues is remarkably stupid. (Or incredibly brave.) But, according to the Journal, the recent spurned $3 billion offer wasn't the first time Snapchat rejected Facebook's advances:
Facebook had earlier offered to buy Snapchat for more than $1 billion, the people briefed on the matter said. In recent weeks, Facebook representatives contacted Snapchat again to discuss an all-cash offer that would have valued Snapchat at $3 billion or more. At that price, it would be Facebook’s largest acquisition, more than double its nearly $1 billion deal for photo-sharing social network Instagram in 2010.
Snapchat, which has about 26 million users in the U.S., is trying to fundraise from investors at a valuation of $3-to-4 billion right now. It's unlikely the company will be sold, to anyone.