As you may or may not already know, Snapchat (a photo messaging service) recently turned down a $3 billion dollar offer from Facebook. Yes, that’s billion with a ‘b.’ Two things are really interesting about this rejection.
1. Zuckerberg and company offered cash.
Meaning the acquisition wouldn’t be tied up in stock or shared equity. Evan Spiegel and his cohorts could walk away from the deal with their pockets jammed full of ‘Benjamin’s.’
2. Facebook is the best suitor.
There aren’t many companies willing to pay billions for such a new and profitless company. The list is short and Facebook is at the top.
Companies theoretically willing and able to buy Snapchat
If anybody understands what Snapchat is trying to do, it’s Facebook. If any company isn’t going to totally ruin and screw up Snapchat, it’s Facebook. They had the highest offer from their ideal buyer…yet they said no. They’re not crazy, they just know something we don’t know.
Our co-founder Noah thinks they’ve been tipped off.
Tipped off by a new product that doesn’t have a keyboard and relies on a form of messaging that’s purely visual.
Yes, the iWatch. Snapchat is looking at the potential of the iWatch and deciding they’re willing to bet on Apple releasing this new product. Snapchat is better suited for the iWatch than any other social service (aside from Instagram). Facebook and Twitter will have a pretty serious challenge integrating themselves into this new device but Snapchat will fit easily.
And if the iWatch takes off, you can assume the value of Snapchat will multiply. But I have to ask, did they think the iWatch is coming or did Apple actually tell them?
Chris Prestemon is writer & strategist @ happyMedium.