Snapchat rejected $3 billion buyout offer from Facebook

November 14, 2013

Mobile messaging startup Snapchat rejected an acquisition offer from Facebook Inc that would have valued the company at $3 billion or more, according to a Wall Street Journal report on Wednesday.

Facebook representatives reached out to Snapchat in recent weeks to discuss the all-cash deal, which would have been Facebook’s largest acquisition ever, the report said, citing anonymous sources.

When I heard of this, my initial thought was, “How is Snapchat worth $3 billion when Instagram was worth only $1 billion?” Facebook seems to have a penchant for buying up revenue-less companies for massive sums. Wonder what they’re up to now?