In 2013, Snapchat’s CEO, Evan Spiegel, decided to turn down a $3 billion offer from Facebook to purchase his mobile messaging app. In October 2014, Snapchat announced they would begin advertising, which their studies have shown %60 of users enjoyed. Most recently, a combined investment of $486 million has jacked the app’s worth to an estimated $10 billion.
The appeal of Snapchat is “ephemeral messaging,” or the sending and receiving of messages that disappear after several seconds. This makes the app a wildly popular/convenient means of sending explicit pictures, which put Snapchat in a predicament last year after the word “child pornography” was thrown around. Next, they got in trouble for falsely advertising that the photos and videos sent from users “disappeared” completely, which we all know to be the Internet’s sharpest double-edged sword: nothing is ever “deleted.” To top it all off, The Snappening was a hack of 4.6 million Snapchat user accounts that brought the company further grief.
When Snapchat turned down Facebook’s offer, the company was two-years-old and had no revenue. For a bit of perspective on just how bold that move was, Facebook acquired Instagram for $1 billion, which was probably a wholesale price compared to what IG would be worth now.