Facebook’s Reported Bid for Snapchat and Other Fascinating News on the Web

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  1. Poof

    According the WSJ, Snapchat recently turned down a $3 billion acquisition offer from Facebook. That’s a lot of dough for a company that enables millions of (mostly) teens to exchange photographs and videos that disappear a few seconds after they’re viewed (revenues, on the the other hand, haven’t appeared at all). This questions arises: Is Snapchat founder Evan Spiegel out of his mind? Here are a few things to consider. First, Facebook had earlier offered a billion for Snapchat. Maybe the number will keep going up. Second, Snapchat has prospective investors willing to invest in the company at an even higher valuation. And Spiegel can sell a block of his stock to those investors and become wildly rich without selling the company. That said, a company like Snapchat (no revenues, uncertain shelf-life) is probably worth a lot more as part of Facebook than it will be alone…

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