Why Snapchat Rejected Facebook’s $3bn Acquisition Offer, and Other Secrets from Email Leak
By Alex Spencer
Snapchat is the latest company to have its secrets leaked after hackers exposed the private emails of Michael Lynton, CEO of Sony Entertainment – and a member of Snapchat’s board.
There are a host of revelations in the emails, including three acquisitions made by Snapchat over the past six months, details of Facebook’s acquisition offer, an investment deal with Tencent which fell through, and plenty more besides.
Facebook and Tencent
The emails confirm that Snapchat rejected an acquisition offer from Facebook, apparently in excess of $3bn (£1.9bn), last October.
An email to Lynton from Mitch Lasky, another board member, shines some light on the thought process behind Snapchat turning down the deal:
“I think while [Snapchat CEO Evan Spiegel] liked the team and idea of Facebook, he’s been disappointed with the number he’s getting from Zuck, so he’s now characterizing his conversations with Facebook as a gambit to scare a higher number out of the Series C investor.”
Around the same time, Snapchat was also negotiating an investment deal with Chinese internet giant Tencent. The reasons behind this, according to Lasky are that “[Tencent] thought the $4bn price tag was unsupportable, they were offended by the terms, and they didn’t like the fact that I didn’t …read more
Source:: Mobile App News