10 years ago
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Snapchat Spurned $3 Billion Acquisition Offer from Facebook
Snapchat, a rapidly growing messaging service, recently spurned an all-cash acquisition offer from Facebook for $3 billion or more, according to people briefed on the matter. The offer, and rebuff, came as Snapchat is being wooed by other investors and potential acquirers. Chinese e-commerce giant Tencent HoldingsTCEHY -1.12% had offered to lead an investment that would value two-year-old Snapchat at $4 billion.
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Just shows how dumb these kids running the show really are. It took them a bunch of luck and a single (stupid imo) idea, to get the opportunity to get filthy rich and they don't take the chance. Take it because 1. it's only worth so much because of the usage numbers and market share and once something new comes out it will drop like a stone, and 2. you get a huge amount of hard cash to live like a king for the rest of your life, while also having virtually unlimited funding (and connections) to build another dozen companies, fail or not.
This kind of story always has an intransigent venture capitalist behind the scenes, who's shooting for the moon. That's how they operate, isn't it? All or nothing. The 1 out of 10 that breaks big, pays for all the rest. Or what Canuck said. :)
They just had a round of funding a few months back at a valuation of $800m. I'm sure the people who invested then didn't want to cash out so quickly.
3.5x on their money within a few months is a very good return, especially for the ones that pumped in a lot of cash. But I see what your point is.
Or maybe they don't have control anymore. It happens, especially if they were too young to understand it when they sold pieces.
their confidence is sky high