Snapchat rejects a $3 billion cash offer from Facebook

snapchatAccording to the Wall Street Journal, Snapchat, a business that has no sales, has rejected an all-cash offer from Facebook Inc. for close to $3 billion.

Snapchat is a smartphone app that enables users to take photos, record videos, add text and drawings, and send them to a controlled list of recipients. These sent photographs and videos are known as “Snaps”  disappear in 10 seconds or less after opening.

Snapchat has also been approached by other investors and potential acquirers. Chinese Internet giant Tencent Holdings Ltd. had offered to lead an investment that would value Snapchat at $4 billion.

Snapchat Inc. co-founder Evan Spiegel thinks that users numbers will continue to grow rapidly and his company can get an even higher valuation. He is said not to be interested in selling the business before 2014.

Snapchat raised $80 million in a second round of funding led by Institutional Venture Partners in June 2013.

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