The buyout offer of $3
billion made for Snapchat Inc by Facebook Inc (NASDAQ:FB) has been rejected by the
Internet startups (co-founder Evan Spiegel), as declared by the people having
knowledge of the matter. Snapchat Inc was founded two year ago and has received
several bids from prospective buyers and other investors, such as Tencent
Holdings Ltd. Tencent Holdings Ltd is Chinese Web based organization and has
offered $4 billion to invest in Snapchat Inc.
The company has no such business objective
or sales alternative but the website of company has Smartphone app that
distribute vast amount of messages, largely from young teenagers and adults that
withdraw in 10 seconds or less.
It has been said by the source closed to the matter,
it is expected that Snapchat Inc will look forward to takeover or an might be
an investment approximately in 2014. But the representative of the company
declined to comment. The co-founder is hopeful that his company will acquire an
even higher valuation, further added by the source. As the number of users is
growing and the existing users are encouraging which indicates that it is not
likely to fade soon.
The statement of Snapchat Inc in September affirmed
that its usage had roughly increased two folds to about 350 million messages
that are normally known as “snaps” on a daily basis, as compared to increase in
June with 200 million messages. However it does not expose any number
concerning its number of users.
In the past the giant of US social networking has
offered a bid over $1 billion in order to acquire the Snapchat, the source also
exposed that representative for social networking giant has discussed their
offer with company that it will give a complete cash offer that would be close
to $3 billion, which will be the biggest acquisition of FB to date. Shares of
Facebook Inc (NASDAQ:FB) were down by 0.39% to $48.52 in pre-market.
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