You are 23. You are offered $3 billion dollars. You take it.
Evan Spiegal, the CEO and co-founder of Snapchat, was just made this offer, and happily declined.
Two years ago Evan and partner Bobby Murphy were attending Stanford University and they had an idea. A very good idea. They believed there was a void in instant messaging, so, they developed an app. This app has now turned into a network of an estimated 5 million daily users, Snapchat. If you are not familiar with this company (dad), Snapchat sends “self-destructing” photos via mobile message. Simple enough. In September Snapchat sent 350 million photos a day.
So yes, it has been a success.
This storyline is pretty much the same one as Facebook. Swap Stanford for Harvard, there is another former “partner?” suing for not honoring an agreement, same same. You may recall that relatively early on in the life of Facebook Zuckerberg was offered $1 billion for his creation, and he turned it down. Seeing that Facebook’s market value has now climbed over 100 billion, it was a smart decision.
But Snapchat and Facebook are not the same, not by a long shot.
Facebook is not a one trick pony. Facebook shares photos, ideas, events, businesses, personal anecdotes, literally anything.
Snapchat takes photos.
The true capabilities of Zuckerberg’s social network are still not 100% defined. The potential to make money with 1 billion users is still greater than the money being brought in. The threat, however, is a new social media phenomenon.
Hence the offer of $3 billion. This play was made by Facebook, and is an extremely generous offer for a company with no revenue from a company that can afford to make an over-the-top offer.
Snapchat seems to think they are worth more, and it gets me a little riled up.
You are 23, and the offer is $3 billion dollars. You know what you can do with that? Whatever you want, forever. So can your kids, and their kids. Are you holding out for $10 billion? What differences will there be in your life between 3 billion and any other amount of money?
Sorry, but Spiegal and Murphy, you are dipshits.
I definitely give you credit for a great idea and the implementation/follow through, but this was not a life altering invention. It wasn’t even an invention really.
You used cellular technology to create an app that shares photos. Nothing new.
Yes, of course I am jealous/upset that I didn’t think of it, but you aren’t Thomas Edison or Jonas Salk changing the ways of the world. It’s an app, and an idea that not only could not exist on its own, but more importantly has not turned a profit.
Take the money. Don’t be so greedy. You really aren’t that awesome. Something cooler will be around shortly. The risk of holding out is not worth the reward, just ask Andrey Ternovskiy, the founder of chatroulette.
Of note to this article, I received a D in economics from The Harvard of North Central Kansas, Baker University. So, really, what do I know?
For another point of view and a more credible source here is the CEO of crowdgather and Forbes guest columnist Sanjay Sabnani: