Science and Tech


Google Reportedly Tried To Outbid Facebook For Snapchat

Snapchat creator Evan Spiegal reportedly started a bidding war between Facebook and Google, only to spurn them both.
Posted at 11:26 AM, Nov 15, 2013

Just days after photo-sharing app Snapchat said no to a $3 billion dollar buyout from Facebook, new reports are surfacing that search-giant Google has offered an even higher bid for the service. 

The rumor first surfaced after GigaOm founder Om Malik tweeted this: "Latest rumor/gossip on @Snapchat. After Facebook offered $3B [billion] Google offered $4B [billion] ... " and here's the catch " ... but [Snapchat creator] @evanspiegel said no!" 

The Wall Street Journal reported Wednesday that Spiegal was originally in talks with Chinese e-commerce giant Tencent, but after those broke down he went to Facebook claiming he was ready to sell. 

But, he then turned down an $3 billion dollar all-cash offer from the social media site after reportedly taking the deal to Google and asking them to match the terms. 

And with Google's interest piqued, the company was reportedly prepared to shell out $4 billion. That's a lot of dough, considering Snapchat has no profit model for its product so far. (Via The Times of India)

But Spiegel reportedly rejected that offer too, with reports claiming he had never had any intention to sell, but rather wanted to increase the company's valuation for fundraising next year. (Via TechCrunch

Because there's a good chance Snapchat might surpass 400 million snaps per day this winter. (Via Snapchat

That mark would rival the number of photos uploaded to Facebook each day, giving a higher valuation and validation. (Via Facebook)

A blogger for Valleywag says when it's only billions of dollars in cash, why not just shout big numbers into a bubble and let them gain strength as they roll? 

" ... all these rumors flying without a cent changing hands? Seems on par with paying billions of dollars for a startup with no revenue."