Facebook offered a $3 billion acquisition deal to Snapchat but the photo-messaging company has turned it down. Snapchat is the latest promising photo-messaging company that the social media giant wants to get its hands, since it becomes a competition. There are currently other offers for the newest company.
What Is Snapchat?
Snapchat is just two-years-old but has already become one of the most popular options for teens around the world. It was started by 23-year-old Evan Spiegel, who has made it very clear that it will be next year when—and if—he decides to accept an acquisition deal. It currently has no revenues but has funding worth almost $94 million.
It is very much like Instagram, in the way that people share photos with their friends and family. It is a free app that anyone can download onto their Smartphone device. From there, they take photos and send it to those who they want to share it with. The only way to share anything is by knowing usernames and being connected as friends.
There has been a lot of concern over privacy lately and one of the biggest questions that Snapchat gets is whether photos are kept on their servers. The website clearly states that all photos are deleted as soon as the recipient opens them. It could be a worry for people how this would change if the social media giant gained ownership of the company.
Snapchat Proves Big Competition for Social Media
With over 350 million photos shared on a daily basis, it is no surprise that others want to take over the company. The Facebook acquisition deal is the first to be turned down by Snapchat with the growing interest. However, the number one social media site will not likely give up the fight. The photo-messaging service has already started pulling teenagers away.
This isn’t the first time that the social media company has made an offer. A previous offer was made for just $1 billion. The growth in the deal just shows how much the photo-messaging service is growing. From reports in the spring of 2013, five million people use the service on a daily basis.
Snapchat Not Without Controversy
Despite the large offering, this photo-messaging company is definitely not without its controversy. Like Facebook, it has been linked to a range of cyberbullying problems and “sexting”. Children under 13 are not allowed to create an account but it is a wonder how the owners can control that. The social media site has the same rule but there are plenty of under-13s using the website.
It is also currently involved in a lawsuit instigated by alleged co-founder, Reggie Brown. He claims to have had the idea but has not been allowed any profits or part in the venture. This case continues.
Snapchat is extremely popular with teenagers, though. There is a smaller digital trail left and not as much over-sharing as some social media sites are involved in. It is clear why so many companies want to get their hands on it. Only time will tell whether another acquisition deal from Facebook will be turned down by Snapchat.
By Alexandria Ingham