Facebook Offers To Buy SnapChat for $1 Billion
SnapChat the photo sharing app that claims to have 350 million photos a day go through the service, was offered $1 billion from Facebook to acquire their company.
The reason for the potential acquisition stems from Facebook wanting to attract a younger demographic, that is commonly using SnapChat, and other photo sharing apps and sites.
Despite showing no significant revenue, it’s not stopping major companies from acquiring these huge sites and apps. Google acquired Waze which had a very low revenue in the low millions, yet they were acquired for $1 Billion as well. Also, Instagram was acquired around the $1 Billion mark and also had no major revenue stream.
Facebook would be able to attach their ad products in time to the site and find ways to monetize. Clearly a dedicated frenzied user base is just as valuable as an already existing revenue stream.