Recently, Gawker leaked Snapchat’s earnings report from 2014. As you expect, it’s big… Snapchat, which is valued at a mere $20 billion is still rather unprofitable. According to Gawker, the company lost $128 million last year while only generating $3 million.
If you remember a couple years ago Facebook offered the tech startup $3 billion for the app. Snapchat’s creator, Evan Spiegel turned the deal down stating,”There are very few people in the world who get to build a business like this,” he told Forbes, “I think trading that for some short term gain isn’t very interesting.”
Breaking down the 3 billion dollar offer, Spiegel and his cofounder, Bobby Murphy, would have received $750 million each. This almost real life Silicon Valley has turned them into the hottest developers in the industry. Snapchat recently added a tab for their highest paying advertisers, a smart move. Allowing ad space while maintaining the allure that is Snapchat. Despite their earnings being a little low, they still have roughly $320 million in cash on hand.
Personally, I would have taken the initial offer of $3 billion. Call me old fashion, but that’s plenty of money… especially considering in this day an age, you can easily become the next Myspace… Until then, they continue to run their pirate ship and while they are still able to turn a profit it is only a matter of time before the next app comes along, stealing their spotlight.