It was the summer of 2006. Facebook was just two years old, and strictly a college site, with some 8 or 9 million users. And the company’s founder, Mark Zuckerberg, met with board members Jim Breyer and Peter Thiel to discuss Yahoo’s $1 billion buyout offer.

As we all know, Zuckerberg ended up turning down the money, in what has become one of the most infamous moves in the last 10 years of tech. But the wunderkind recently found himself on the other side of the negotiating table, with even more money at stake…

The founders of Snapchat, a rapidly growing messaging service, recently met with Facebook to discuss an all-cash acquisition offer worth $3 billion or more, reports The Wall Street Journal. And just like Zuckerberg before them, they chose to walk away from the money.

Unsurprisingly, this wasn’t the first time Facebook had approached them:

“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 the nearly $1 billion it paid for photo-sharing social network Instagram in 2012.”

So why is Facebook so interested? Easy. In addition to using the site to share status updates and photos with friends, it wants you to use it to talk to them as well—especially on mobile (see redesigned Messenger app). And right now, more people are doing this on Snapchat.

Snapchat co-creators Evan Spiegel and Bobby MurphySnapchat founders Bobby Murphy and Evan Spiegel 

Other investors are interested as well. Citing sources familiar with the talks, the Journal says that Chinese e-commerce giant Tencent Holdings  Ltd. has offered to lead an investment that would value the two-year-old company—which doesn’t generate any revenue—at $4 billion.

From the sounds of it, though, Snapchat’s CEO Evan Spiegel won’t be considering any offers until at least sometime next year. It’s believed that he’s hoping that his company’s numbers—of users and messages—will have grown enough by then to justify an even larger valuation.

  • Joonyaboy

    Take the money!

  • Max Rojas

    lots of $$$$$$$$$$$

  • Snapchat is different than Facebook was at the time. It’s a one-dimensional app that probably should have taken the money. The fad will die off soon. They could have gotten to more users especially if Facebook implemented it into their web and mobile interfaces. I don’t see how snapchat will ever make any money with the current model. It would have been interesting with ads from Facebook. Can you imagine, short Snapchat ads? Could have been a viral platform for advertisers.

    • Cameron Chao

      thanks for saying exactly what i was thinking, they shouldve taken the money, facebook always had alot of potential, snapchat is one dimensional.

  • Ted Forbes

    Snapchat, 4 billion!!!! Wow!!!!!!!


    I read another article about this where it stated that they hoped the user base increased before the next offer in hopes of the offer price to be even higher. I just can’t understand people that are rich or could be and have the greediest mindset to want more and more. You could buy anything you ever wanted, twice or more, but they still want mooaaar. Crazy! *sigh*

    • Nate McKelvie

      Just because it’s a ton of money doesn’t mean it’s what’s right for the owners. I think they are making a mistake because I don’t see snapchat becoming the next fb, but that’s just my opinion and I could be wrong. But the owners are not necessarily being greedy. They are just holding out for the value they believe it’s worth or could be worth, and that’s their choice. I made the mistake of “taking the money and running” when I was 18. I’m not talking anywhere near these kinds of numbers, but I took an offer for my website and quickly realized I was too eager to get paid and should have held out for what it was really worth. And it’s one of my biggest mistakes in life. And these guys are talking in the billions. You don’t want to make a billion dollar mistake. And look last year they were offered 1 billion, held out and got offered 3 times that


        I understand that but like you said, we’re talking billions. One billion vs 3 billion…either one is more money than anyone could ever use in a lifetime, that’s my point but to each his own.

  • Jo


    • Tobias9413

      I know you,,, you’re all over you tubes coments. Its that whole “this is jo and repost him to show that you hate google +” well you know what, i don like you jo. Every video i go to, you are there and its effing annoying. sorry Jo but it’s true

      • Name

        his name is bob.

  • marcus1324

    This is what I like to hear!!! I would hate to see Snapchat ruined!

    • There’s not much you can do to ruin it. It’s already the poorest designed app in the app store.

      • Hawks

        But look at how many people use it. And look at the offer. Not bad for a poorly developed app huh

      • My point exactly. 3 billion is more than they deserve. They shoulda jumped on it. My feeling is the valuation only goes down from here.

      • marcus1324

        What are you talking about? Do you even understand Snapchat? It’s so popular all of my friends have it and I use it constantly. I think it’s a good idea on what the CEO chose to do and his excuse was good also. I would hate to see this ruined by Facebook, crappy UI, NSA, etc.

      • It’s not $3 billion dollars popular. And yes I know exactly what Snapchat is. It’s just that I’m not a 12 year old girl so I chose to delete it from my phone.

      • marcus1324

        What 12 year old girls use Snapchat

      • You obviously don’t know how Snapchat gained traction and become popular. Through the use of 12 year olds sending duck faces to each other. I realize it has it’s crowd and it’s audience. I’m just saying, it’s a one-dimensional service that will soon die off and should have struck while the iron was hot.

  • sn1p3r

    3 billions is enough money to live extremely well for the rest of your life. Why more?

    • appl3h4ck3r

      Bcuz why not?

  • Seriously? I wouldn’t even turn down $3 XDXD

  • on3simpleclick

    Considering Snapchat doesn’t earn the developers anything, they should have just taken the money. They could have used it to fund the development of a new app & live quite comfortably whilst doing so.

  • Apanizo2

    Dang Facebook…… Wanna buy twitter while your at it?

    • on3simpleclick

      For a low price of $25 billion, it’s a steal!

  • Merman123

    I didn’t even have to read the article. Simply reading the title induced a large face palm.

  • KewlDewd

    How on earth could Zuckerberg turning down $1b dollars in favor of making many times that be considered “infamous”?

  • Terence Ho

    If they take the deal it ruins Snapchat’s reputation for security if Facebook takes over. Though Facebook is already linked to snap chat to find friends and share details, the photos are supposedly not stored on their servers for over 48hrs

    • Palmer Paul

      In the buying out of Snapchat, Facebook would also take over Snapchat’s servers, and would therefore presumably continue to store users photos on there for up to 48 hours.

  • appl3h4ck3r

    Smart move not taking it. Anyone else on here doesn’t seem to know that taking the money and running isn’t always the right way of doing things, especially if you’re a big-time CEO like Spiegel

    • Palmer Paul

      What about Mr. Mark Cuban? He took the money, and he seems to be doing pretty good for himself

  • Barnez Hilton

    so long as there are dirty politicians who try to hide their affairs, this app will thrive. SO long as girls in high school want to send their boobies to other boys for 3 seconds only to tease them and get attention, this app will thrive

  • Richard W Mercer

    Remember Netscape or what made Mark Cuban a billionaire? Snap could just be a crack addiction and be gone. They should take the money and enjoy never having to answer to shareholders, and have the freedom to do anything.

  • Benben

    Let’s see if they end up selling it for a couple of million instead after users stop caring about it. Turning down 3 billion for an app like that? Guess they don’t want the money then. Greed is never going to get you further..