Why is Snapchat so Valuable; Turning Down Billion Dollar Offers?

Snapchat is a mobile app that allows users to send their friends photos and videos that can only be viewed for a short period of time. Simple idea right? This simple idea is worth billions; Snapchat has been offered tree billion by facebook and four billion by Google. Both offers were declined. So how much is Snapchat really worth? It is hard to put a finger on the exact number but here is what we do know: Snapchat’s value will only increase in the time to come. Does Snapchat think they can profit more than four billion dollars from the app? Advertisements. Right now Snapchat appeals to a demographic of older kids and young adults, but it is being used by more and more people just because its simple effectiveness. So advertisements on the app will rake in money for the company. Ads will show up for a few seconds before every few snaps. The ads may cause some people to say that they are going to stop using Snapchat, but most will be more than happy to look at the ad for a few seconds because they know that they will get to see the snap. It is just like YouTube. Ads before videos are annoying but everyone is willing to wait through the fifteen or three second ads so they can see the content hidden behind them. If I were Google I would drop whatever amount of money they want for Snapchat. Snapchat will only get bigger, and if it integrated into Google Plus, Google plus would explode.

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