Snapchat’s parent company Snap went public in March 2017 with a valuation of $24 billion. This Friday, Snap’s stock closed at its lowest ever value — less than $5 for the first time.
A new report from The Wall Street Journal has shed some more light on the current situation of Snapchat. One of the major highlights of the report is the fact that Mark Zuckerberg approached Snap in mid-2016 with the intentions of buying it; Snap CEO Evan Speigel turned down the offer.
It’s worth noting that Speigel turned down such an offer for the second time in three years. Back in 2013, he refused to sell his two-year-old company for $3 billion to Facebook.
The report doesn’t mention any specifics of the price offered in 2016. Additionally, Facebook didn’t make a formal offer unlike how the company did in 2013.
However, it does mention that Facebook COO Sheryl Sandberg reached out to Snap board members to measure their interest in such a proposal.
Meanwhile, Snapchat’s problems seem to be growing. In 2018 Q3, the daily active users of the app declined 1%. Spiegel has also sent a memo to the employee with a goal of breakeven in the fourth quarter.