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$0 I hadn't heard of SnapChat until this acquisition story broke. I guess I'm out of touch or something? Anyway, no revenue and no real hope of revenue = $0.

$0 I hadn't heard of SnapChat until this acquisition story broke. I guess I'm out of touch or something? Anyway, no revenue and no real hope of revenue = $0. VC can blow smoke up your ass until they collapse, blue in the face, but it's not a winning proposition.

essersteven 13y ago
You are out of touch. For those < 30, SnapChat is one of the most popular social networking apps. It may not be generating revenue now, but there has to be some value in it for the amount of users it currently has. edit: but yea, I think $3 billion is a little high...
- WhiteFoxx 13y ago
  Theres a difference between having value to users because its a decent app and they get to use it for free, and generating revenue from those users. Ask those users to pay and they will leave in droves.
  - coralreef 13y ago
    Getting users to pay isn't the only way to make money.
    - WhiteFoxx 13y ago
      Thats true. But what have they really got to sell?
      - coralreef 13y ago
        Who knows. Pre/post roll ads on snaps. Stickers...
        WhiteFoxx 13y ago
        Exactly, who knows....
        001sky 13y ago
        Which is a problem for advertisers. not to be meta, but its true. marketers want to but mindshare, and they want to make sure their pitch is not going to be taken out of context. not knowing what your pitch will look like in context is usually a non-starter for ad sales guys. Of course SnapChat may not want to deal with advertisers as that would require tracking and verification, which might put off some end users as well. That seems to leave fewer possible business models. Although they may invent something new, so lets not count them fully out.
shubhamjain 13y ago
I am not an investor and have very vague clue of such eccentric valuations but let me get my facts straight. An app which is analogous to a "teen trend", generates no revenue, has a very little or no clue how to either, is worth $3B? Does the brand value and niche matter more than possible potential of company, "money-wise"?
- imsofuture 13y ago
  To some people! :)

essersteven 13y ago

You are out of touch. For those < 30, SnapChat is one of the most popular social networking apps. It may not be generating revenue now, but there has to be some value in it for the amount of users it currently has. edit: but yea, I think $3 billion is a little high...

WhiteFoxx 13y ago
Theres a difference between having value to users because its a decent app and they get to use it for free, and generating revenue from those users. Ask those users to pay and they will leave in droves.
- coralreef 13y ago
  Getting users to pay isn't the only way to make money.
  - WhiteFoxx 13y ago
    Thats true. But what have they really got to sell?
    - coralreef 13y ago
      Who knows. Pre/post roll ads on snaps. Stickers...
      - WhiteFoxx 13y ago
        Exactly, who knows....
        001sky 13y ago
        Which is a problem for advertisers. not to be meta, but its true. marketers want to but mindshare, and they want to make sure their pitch is not going to be taken out of context. not knowing what your pitch will look like in context is usually a non-starter for ad sales guys. Of course SnapChat may not want to deal with advertisers as that would require tracking and verification, which might put off some end users as well. That seems to leave fewer possible business models. Although they may invent something new, so lets not count them fully out.

shubhamjain 13y ago

I am not an investor and have very vague clue of such eccentric valuations but let me get my facts straight. An app which is analogous to a "teen trend", generates no revenue, has a very little or no clue how to either, is worth $3B? Does the brand value and niche matter more than possible potential of company, "money-wise"?

imsofuture 13y ago
To some people! :)