With Facebook offering a staggering $3 billion for social startup Snapchat, I have to wonder: is it really as popular as the money would suggest it is?
Remember: Instagram, a social network based entirely around photos that was already large at the time it was acquired, was purchased by Facebook for $1 billion. That’s massive, particularly considering that at the time, Instagram had no public plans to generate revenue off of its service.
And now, Mark Zuckerberg and Co. are offering three times that number for another startup that isn’t in the black. Snapchat has to be absolutely massive, and posing a threat for Facebook, to be worth such a price to Zuckerberg.
So, do you use Snapchat? Is it a valuable part of your smartphone, or is this just an example of a crazy company willing to pay a crazy price for a feature that won’t ever generate money?