Snapchat

[MJRomeo81]

Is it just me or has the world gone crazy? Snapchat founders turning down a $3 billion offer when the product literally has no business model.

How is it even popular? People say the app is ephemeral. There's free apps on the marketplace that literally save the images to your device without alerting the sender.

Doesn't this effectively ruin the whole concept and therefore render the app worthless for the majority of users?

[lala1911]

Personally I would've turned down the offer too. The owner is probably living a great life right now with his millions and doesn't see the need to sell his app. I'd value my extremely popular app more than $3 billion to be honest. Money means a lot, but when you have enough money then it isn't really a priority.. for me of course. I guess the owner must be making a lot of money somehow from the app to turn down $3 billion though.

It's popular because its easy to function and got lucky with word-of-mouth advertising. The name Snapchat is very attractive and it's not that hard to use, from what I've heard and seen (you'll never find me using it ;p). I guess that people want to be alerted when a new photo is sent, because it is a live chat I assume.

I don't know what you mean by that last statement but I thought being alerted would be better than not being alerted. People would want to know when they have received a new photo. Its pretty much a live chat but with photos, and you get alerted in chats e.g IM

[Russ]

He means there are apps that save whatever images are sent to you without letting the sender know. Since one of the biggest appeals of the app is to send private images confidentially, it's a pretty big drawback.

And yes, turning down $3 billion is crazy, but people are dumb like that.

[chasej]

And yes, turning down $3 billion is crazy, but people are dumb like that.

Yeh. Seriously. Even if it was possible to be bigger offers than 3b, there's really no point in not accepting it. Let's say 2b are lost to taxes and other fees (it would be less likely), that leaves 1b which is enough for the owners to give themselves and their extended family a pretty decent lifestyle.

The only time one shouldn't accept such a massive offer is if the company is going to highly likely generate revenue which exceeds the offer imo.