Facebook made a mid of $1 billion dollars to acquire photo sharing app, Snap Chat, according to a report by WSJ. The report also added that Snap Chat CEO, Evan Spiegel reportedly turned down the offer.
Paying a big price for start ups is not something that Facebook is new to. Back in April 2012, the company acquired Instagram for $1 billion in cash ans stock. Apart from this, Facebook has also acquired start ups like Spool and Karma. In 2013, the company made a string of acquisitions including startups like Parse, Hot Studio, Atlas and Spaceport.
So why does the social networking giant want to pay such a massive sum for a photo messaging application? That's because users of the app share about 350 million photos per day, which is almost the same number that Facebook has been boasting since September. Snap Chat's numbers can also compete with messaging app, WhatsApp, whose CEO Jan Koum said on Sunday that his users share more than 400 million photos daily.
By adding Snap Chat to its kitty, Facebook will be able to own a sizeable portion of the market for photo blogging and messaging apps. However, it does not look like the social network will acieve this dream.
Today, more and more people are resorting to pictures to blog about their life instead of written text which is far less appealing and in ways, more time consuming. This is one of the reasons for the growing popularity of photo apps and photo blogging apps.