Snapchat has been getting a lot of attention lately, with offers from Facebook and rumored offers from Google.
Snapchat is a mobile service that allows you to send photos and videos that delete themselves after being seen. The offer which Snapchat turned down from Facebook was for $3 billion dollars. With a reported 400 million images and videos being send daily, the service has quite a large user base. Facebook currently reports around 350 million photos and videos being uploaded daily and Instagram has a reported 55 million.
It seems amazing that the company would turn down such a large offer for their services although they may have their sites set higher looking to follow the example of Twitter which IPO'ed to great success. Kids are not using "traditional" social media as much as they used to, and reports show less Facebook interaction with young adults than before. Snapchat on the other hand has an estimated 26 million users but more impressively 26% of all adults between the ages of 18 and 29 are using the service.
“A college dropout running a company with almost no assets, no revenue and a mountain of legal problems, (Evan) Spiegel is betting Snapchat can transcend the stigma of the ‘next big thing’ and become an industry unto its own….either one of the most brilliant entrepreneurs ever, or a delusional fool.”, which delved into what it called the “sext message” origins of the service.
Similar to many social media sites and services, Snapchat is not profitable and has no clear business model. This however has not stopped companies like Facebook and Google who are more interested in engagement than profit, from making offers.
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