Facebook wants to the be the only messaging platform but competition is stiff. The company purchased Instagram for $1 billion in April 2012 to maintain social photo sharing dominance. A new report from The Wall Street Journal says Facebook approached Snapchat for an acquisition worth over $1 billion but Snapchat CEO Evan Spiegel turned down the offer.
It’s easy to see why Facebook would want to purchase Snapchat. The massively popular photo and video sharing application is frequently used by younger users, which Facebook is losing to competitors like Snapchat and WhatsApp. Snapchat offers social sharing without permanence since pictures and videos disappear after being sent. Facebook, on the other hand, constantly wants users to post publicly, recently allowing teens to do so for the first time on the social network.
Facebook attempted to take on Snapchat last December by releasing Facebook Poke for iOS. The app never took off and Snapchat remains the app of choice for those who want to share self-destructing images and video.
Snapchat is currently considering another round of funding that could drive up the value of the company to between $3 – $4 billion.
[Source: The Wall Street Journal]