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They were offered three billion dollars that they turned down. That is the best offer they will ever receive, and they fucked it up. They fucked up big time.

They were offered three billion dollars that they turned down. That is the best offer they will ever receive, and they fucked it up. They fucked up big time. The value of a company pre-IPO is what someone (or relatively few people) is willing to pay to acquire you. The value of a company post-IPO is essentially how much your shares are selling for. The prices of your shares are largely dictated by the opinion of a much larger number of people.

ejcx 11y ago
Come on. Even if snapchat rapidly declines I am guessing Spiegel is going to end up doing alright. Why not go for it like Zuckerberg did instead of selling? Can't succeed if you don't try. Good for the founders for deciding to run with it.
- spotman 11y ago
  Oh surely he will be fine. You would be a fool if you did as well as they did now, and ended up in really dire straights on a personal level. Having said that, I agree. It was likely a huge mistake to turn that down. FB has whats app, and there is now so much competition in this space its uncanny. From iMessages, to FB Messenger, to Whats App, and smaller players like Kik, it seems like a congested market.
- jonknee 11y ago
  You can do both--sell your revenue-less startup for billions and then start a real business with a portion of your fortune.
paulpauper 11y ago
They fucked up big time. That's what people said about Facebook in 2006 when they turned down the Yahoo offer. I predict Snapchat is going to be a dominant player in mobile advertising, like Facebook and Google. I wish I could invest in it now, even at this high valuation. Also extremely bullish on Tinder and Pinterest.
- justinv 11y ago
  You can own/invest in Tinder (ish - I say ish because you'd have to invest in a bigger company). It's owned by Match.com, which is owned by IAC ($IACI).
the_rosentotter 11y ago
> They were offered three billion dollars that they turned down. That's called balls.

ejcx 11y ago

Come on. Even if snapchat rapidly declines I am guessing Spiegel is going to end up doing alright. Why not go for it like Zuckerberg did instead of selling? Can't succeed if you don't try. Good for the founders for deciding to run with it.

spotman 11y ago
Oh surely he will be fine. You would be a fool if you did as well as they did now, and ended up in really dire straights on a personal level. Having said that, I agree. It was likely a huge mistake to turn that down. FB has whats app, and there is now so much competition in this space its uncanny. From iMessages, to FB Messenger, to Whats App, and smaller players like Kik, it seems like a congested market.
jonknee 11y ago
You can do both--sell your revenue-less startup for billions and then start a real business with a portion of your fortune.

paulpauper 11y ago

They fucked up big time. That's what people said about Facebook in 2006 when they turned down the Yahoo offer. I predict Snapchat is going to be a dominant player in mobile advertising, like Facebook and Google. I wish I could invest in it now, even at this high valuation. Also extremely bullish on Tinder and Pinterest.

justinv 11y ago
You can own/invest in Tinder (ish - I say ish because you'd have to invest in a bigger company). It's owned by Match.com, which is owned by IAC ($IACI).

the_rosentotter 11y ago

> They were offered three billion dollars that they turned down. That's called balls.