23 Yr Old Snapchat CEO Turns Down 3 Billion Offer From FB

tokes99 said:
yea, these dudes seem to come from families that have a some coin, but i think if you were building something and reputable people come to you and offer large sums of cash, not too many folk would just take the money without evaluating what it is they are actually giving up both creatively & monetarily...and i'd have to think, even if a person was just building apps with the intention of selling, they'd still be interested in maximizing that cash out...
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Correct.

I've heard stories from clients who've owned family-run businesses. When you build something from scratch, go through failure/success, and pour your entire livelihood (yes, a lot of these folks had all their $$$ in their companies) into your work, it's hard to let go of your "baby" no matter what.

I don't blame dudes for holding onto their businesses -- maybe they have a vision for it that we don't know. It could be any reason, honestly.
 
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tokes99 said:
it could be greed in some situations, that is one way of looking at it...but think of it the other way; that is you think it is worth more that what offer is or you actually belief in what it is you are building...
if tomorrow you got offered meeting with some investor and after talking with you about the potential of the thing you have built, said investor decides rather than buy your app for the cool 1M they would like to invest in your vision for 10M, you'd turn it down? let's say you do decide you rather do something else than work on this app, if you were to find out, after looking over the particulars with your partners & advisors or people you trust have your best interest in mind, that you could be leaving at LEAST another 30M on the table & laid out a sensible roadmap to get there...you'd walk away? it great to have an exit number/strategy but wouldn't the circumstances affect your thought process?
 
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If this happened I would consider it, but I honestly just made the app to cash out that is my end goal. Not to build up the next huge hyped up app . If an investor believed in it and thought it would go that far I would really consider it.

To me it just seems like this app bubble is coming to an end in the near future.
 
See that's the difference.  You made an app as a means to an end to eventually cash out.  There's different types of business/apps with a certain goal in mind.  There are businesses that you intend to sell and then there's businesses that you intend to keep for yourself because that's your passion and life's work. 

Zuckerberg could've easily sold Facebook.  He had offers thrown at him left and right.  But for that particular business, he kept it.  One of the things I remember him saying is, if he sold it, then what?  What life's work can I do that will be just as big, if not bigger than Facebook?  If he created a business that he couldn't foresee a future with then, that 's different.  I think that's the difference.  Can you see yourself topping that business by moving on to another venture.  if the answer is no, then you don't sell it.  If Evan Spiegel sold Snapchat, then what next?  If he honestly saw a bigger venture than Snapchat then it'd be different. 
 
Your right this isn't my life work, it is one of my passions though. I actually didn't make the app as a means to an end lol didn't know if it would be valuable at all. I did it for the culture.

Yal talk about FB and Snap , but leave out the ugly duckling Twitter that can't be sold at all and isn't doing well lol.

We will see how this IPO goes and the future of snap. I believe the IPO will have a big impact on the app as we know it today.
 
I dont understand how a person with basic knowledge of economics turns down 3 billion dollars.

You can live whatever kind of lifestyle you want with that kind of money.
 
Evan and Mark both stole the ideas of sc and fb. Its somebody else life work lol
 
I wouldn't turn down 3b when you know that you have the capabilities to bring in over 1b in revenue.

Btw, still hiring!
 
KILL MOVES said:
I dont understand how a person with basic knowledge of economics turns down 3 billion dollars.

You can live whatever kind of lifestyle you want with that kind of money.
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You can live that lifetime 8 times over if you don't bust your balls at the first offer

http://www.wsj.com/articles/snap-begins-the-ipo-process-1479244471

IPO projected at $25 billion by March


Dude has the 2nd biggest social network at age 26 and is marrying Miranda Kerr...

I think his knowledge far surpasses just economics


But for the average make it big app dev, I could see why they would sell at 3b. Cause I would.
 
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BeezyGotSole said:
 
Your right this isn't my life work, it is one of my passions though. I actually didn't make the app as a means to an end lol didn't know if it would be valuable at all. I did it for the culture.

Yal talk about FB and Snap , but leave out the ugly duckling Twitter that can't be sold at all and isn't doing well lol.

We will see how this IPO goes and the future of snap. I believe the IPO will have a big impact on the app as we know it today.
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I feel you 
KILL MOVES said:
Evan and Mark both stole the ideas of sc and fb. Its somebody else life work lol
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That would make even more sense to keep the company then cause if you stole the idea you know you can't come up with your own idea and do something better lol 
 
KILL MOVES said:
I dont understand how a person with basic knowledge of economics turns down 3 billion dollars.

You can live whatever kind of lifestyle you want with that kind of money.
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You don't know what you talking about man.

"Basic knowledge of economics." :lol:

When you already come from money, a big cash out is not even close to as much of a draw as the power that comes with being the head of your own 25+ billion dollar company that you built from the ground.

There's a big difference between 3 billion in cash and that type of power.

These guys don't come this far without having ambition/knowledge/oppourtunity that outweighs the other 99% of people.

Problem is, you projecting your mind on to somebody who knows a lot more about what they are doing.
 
BeezyGotSole said:
PRIME said:
You can live that lifetime 8 times over if you don't bust your balls at the first offer

http://www.wsj.com/articles/snap-begins-the-ipo-process-1479244471


IPO projected at $25 billion by March
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So how much money will Evan get out of the projected 25 Billion ?

How does the IPO money go into the owners pocket? I know they own shares, but you have to sell to realize gains .
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I'm not too sure to be honest, but if I were to take a comparison at someone like Zuck who is valued at $51bil with Facebook valued at $350bil, I would assume that Snaps CEO would see that 3bil static offer returned to him sooner than later if he didn't sell.

Snap is growing, whether people like me who don't use it exist or not. And with the direction tech is going with VR and FB already playing around with the idea, I don't see why Snap can't venture into those avenues and continue to grab cash.

He's already valued at $2.1bil, I don't think he's in too much of a rush to grab a quick 3 when he can get even more with that slow hustle.

But someone else more educated has to speak on it, but he really has to potential to be the next Zuckerberg. And Zuck got that bread.
 
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PRIME said:
You can live that lifetime 8 times over if you don't bust your balls at the first offer

http://www.wsj.com/articles/snap-begins-the-ipo-process-1479244471

IPO projected at $25 billion by March


Dude has the 2nd biggest social network at age 26 and is marrying Miranda Kerr...

I think his knowledge far surpasses just economics


But for the average make it big app dev, I could see why they would sell at 3b. Cause I would.
Click to expand...

A few months ago hilary clinton was projected to be the next president. Snapchat is thriving now but it got old for me faster than any other social media platform. I was using SC almost 4 years ago and thought it was the coolest app ever. Its too limited to ever be worth what people think it will be worth. SC only got this far because people these days just arent that sophisticated and move on from EVERYTHING a lot quicker.
 
Snap will never be bigger than FB because of reasons beyond their control but it doesn't need to be to be a massive success.

The infrastructure is already there, they getting into product development and they are entrenched in the lives of the 10-30 demographic.

That's why I had to laugh at y'all at every stage of this thread, it obvious who really pays attention to business especially in the tech world and who is just spouting **** from their ***.
 
VR aint going nowhere and I really wish people would understand that.
 
People generally hate anything involving more hardware
 
KILL MOVES said:
PRIME said:
You can live that lifetime 8 times over if you don't bust your balls at the first offer

http://www.wsj.com/articles/snap-begins-the-ipo-process-1479244471

IPO projected at $25 billion by March


Dude has the 2nd biggest social network at age 26 and is marrying Miranda Kerr...

I think his knowledge far surpasses just economics


But for the average make it big app dev, I could see why they would sell at 3b. Cause I would.
Click to expand...

A few months ago hilary clinton was projected to be the next president. Snapchat is thriving now but it got old for me faster than any other social media platform. I was using SC almost 4 years ago and thought it was the coolest app ever. Its too limited to ever be worth what people think it will be worth. SC only got this far because people these days just arent that sophisticated and move on from EVERYTHING a lot quicker.
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You gotta look at it for what it can become though.

Instagram used to be the app where you just took pictures. Now its grown into a completely different app than what it was introduced as. Granted Facebook bought it later on.

I'm sure Snapchat still has a few more years in it, in which dude will get that 3bil that Zuckerberg offered.

You gotta remember, dude is only 26. He's one of the most powerful guys around right now in his arena. He built Snap going on 5 years ago and has the largest social media company and 5th largest tech company in the world knocking at his door with 3 billion. He's holding the power right now.

The money is sweet, but I would assume that when you're in that position and already have BILLIONS in your name, you're tickled more by the power than the $$$, because if he sold snap and tried to build back up from the ground on another idea it might not get back to where he is right now. If he would have sold to Facebook he wouldn't be looking to go big in March. Imagine where he could be 2 years from now? If anything, we can almost guarantee he will make that 3billion either way he cuts it. So why not go big and still land on $3billion without selling to Hooli off the rip?
 
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No matter what Systrom says, he shoulda waited to sell Instagram to FB as well.

With basically no help from them their worth was 10x that measly billion Zuck dropped for it.

Spiegel didn't make the same mistake and will be rewarded as such.
 
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