- In 2016, Facebook CEO Mark Zuckerberg reached out to SnapCEO Evan Spiegel to discuss the possibility of an acquisition, according to a Wall Street Journal report on Sunday.
- Snapchat infamously turned down a $US3 billion acquisition offer from Facebook in 2013.
- Facebook COO Sheryl Sandberg also reached out to Snap board members to determine their interest in a possible acquisition, according to the report.
- An exact purchase price was not discussed and no formal offer was made at the time.
- The talks occured right as Snap was gearing up for an IPO that it expected to give it a $US25 billion-plus public valuation. Today, Snap’s market cap is around $US6.5 billion.
In mid-2016, Zuckerberg reached out to Snap CEO Evan Spiegel to discuss the possibility of buying the Santa Monica- based company, less than a year before its March 2017 IPO. But those attempts were dismissed by Spiegel, according to the Journal’s sources.
The Journal also reports Facebook COO Sheryl Sandberg reached out to Snap board members to measure their interest in a possible acquisition around that time.
An exact purchase price was not discussed, and according to a person familiar with the matter from the report, the 28-year-old CEO never received a formal offer from Facebook during the discussions. The person close to Speigel also said he has no regrets that the deal didn’t materialise.
Around the time of the talks in 2016, Snap was expecting to IPO at a $US25 billion-plus valuation, according to the report. Today, almost two years after its 2017 IPO, its market cap is around $US6.5 billion.
The Journal report on Sunday also highlighted the recent struggles for Snap, including a botched app redesign, the departure of key executives, and users leaving by the millions. Last Friday, Snap’s stock closed below $US5 for the first time.
A Facebook spokesperson declined to comment. Snap did not immediately respond to a request for comment from Business Insider.
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