We’re sure by now many have heard of the app Snapchat. For those who don’t, it’s basically a messaging app in which users can send each other text and media that will self-destruct after a set amount of time, thus prevent people from storing otherwise sensitive information on their phones. It proved to be popular enough where Facebook had attempted to acquire the company for a whopping $3 billion.
Snapchat has since turned down Facebook’s offer and understandably so. According to a report from The Wall Street Journal, Snapchat is now said to be worth a whopping $10 billion which is more than three times what Facebook had initially offered the company. They also report that Snapchat is currently in the process of courting investors and that Yahoo could be thinking about making an investment of $20 million into the company as well.
Given that Yahoo has been on a spending spree recently and acquiring companies left, right, and center, we guess we can’t say we’re too surprised to learn that they might be interested, even though it’s an investment and not an acquisition. Assuming that Snapchat’s valuation is accurate, we guess the company’s CEO Evan Spiegel was right in turning down Facebook’s offer.
Many had questioned Snapchat’s decision back then, but according to Spiegel at that time, he believed that agreeing to the $3 billion buyout would be a short-term gain. Well for now it looks like he certainly made the right call, but what do you guys think? Do you agree that Snapchat is worth $10 billion?