Facebook Inc (NASDAQ:FB) has reportedly made a $3 billion cash offer for Snapchat, but got turned down. Snapchat is an app that is used for sending messages to friends that self-destructs after a few seconds of being viewed. This rumor is based on a report by The Wall Street Journal. Snapchat is now hitting around 350 million messages per day.
This offer is over 3 times the value of Facebook’s successful bid for Instagram. Founded two years ago, Snapchat may now look at a funding round at a $4 billion valuation. Snapchat currently does not make any money, nor have they disclosed the exact size of their suer base. It has been estimated that Snapchat is used by 9% of adult cell phone owners in the U.S., according to Pew.
This is not the first time that Facebook made a bid on Snapchat. Facebook previously bid over $1 billion in Snapchat, according to the WSJ. It is likely that Snapchat co-founder and CEO Evan Spiegel will not consider an acquisition or investment until early 2014.
Snapchat is also dealing with a lawsuit from Reggie Brown. Brown was a classmate of Spiegel’s that claimed that he should be labeled as a co-founder and should have as much ownership in the company as him.
Snapchat has raised around $73 million in funding from Lightspeed Venture Partners, Benchmark Capital, Institutional Venture Partners, SV Angel, and General Catalyst Partners.