Snapchat reportedly turned down a $3 billion offer from Facebook and raised funding instead. Why did Snapchat turned down the offer? Snapchat is hoping to turn into a more valuable company and believes that they have not peaked yet.
In an interview with The Wall Street Journal, venture capitalist Marc Andreessen said that Snapcould could be compared to Tencent in China. Tencent is currently valued at around $100 billion and started off as a messaging service on smartphones that became wrapped into other services.
“The bull case on Snapchat is that there’s a company in China called Tencent that’s worth $100 billion. And Tencent is worth $100 billion because it takes its messaging services on a smartphone and then wraps them in a wide range of services?things like gaming and social networking and emojis, and video chat?and then charges for all these add-on services. And it has been one of the most successful technology companies of all time and is worth literally $100 billion on the Hong Kong Stock Exchange. Maybe that’s [CEO Evan Spiegel’s] plan. Maybe Evan’s plan is to transplant the Tencent business model into the U.S., which nobody has actually been able to do yet,” stated Andreessen in the interview.
Snapchat is a mobile app that lets you take a photo or video, add a caption, and then send it to a friend. The photo or video disappears from the screen after being viewed. However, you can add the photo or video to a Snapchat Story where each Snap can live for 24 hours until it disappears.