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Snapchat Turned Down $3 Billion Cash Offer

Snapchat is a growing app that has no way to make money or has a clear future. The app allows you to send self destructing photos between 3 and 10 seconds. Recently they even introduce a way to have anyone view your snap for 24 on your stream. The service moved into short videos clips, and so far the ap has taken off with teens who want to share photos. It appears this huge spike in usage has drawn the attention of Facebook CEO, Mark Zuckerberg, who recently offered $3 billion in cash for Snapchat, but CEO Evan Spiegel turned the offer down.

According to The Wall Street Journal, Snapchat is being talked to by many investors who are interested in the app. However, as I’ve said the app is not making any money as of yet. Facebook wants the service because how many teens are using it, while many teens are ditching Facebook. The app see over 350 million pictures/videos sent a day with the app, which shows users are okay with disappearing content. Many speculate that Mark will come back with a bigger offer for Mr. Spiegel, but they are unsure what Facebook will truly gain from this app.

With no revenue and buy out offers, one wonders what Snapchat has up its sleeve to generate some money. The service is somewhat personal with conversations between two people. Ads don’t look like they will be a good fit on the app, but as we can tell teens leave apps behind fairly quickly. We could see tomorrow that Snapchats no longer the powerhouse it was and another messaging app has taken its place.