Rapidly growing Snapchat recently said thanks, but no thanks to an all-cash acquisition offer from Facebook for close to $3 billion or more, according to people briefed on the matter.

The offer, and rebuff, came as Snapchat is being wooed by other investors and potential acquirers. Chinese e-commerce giant Tencent Holdings had offered to lead an investment that would value two-year-old Snapchat at $4 billion.

Snapchat Cofounder Evan Spiegel

Evan Spiegel, Snapchat’s 23-year-old co-founder and CEO, will not likely consider an acquisition or an investment at least until early next year, insiders said. They said Spiegel is hoping Snapchat’s numbers – of users and messages – will grow enough by then to justify an even larger valuation.

A Snapchat spokeswoman declined to comment.

The service has not generated any revenue, but is especially popular among teenagers and young adults, who use the app to send disappearing messages to friends.

The approaches to Snapchat come amid rising exuberance for social media, and mobile-messaging upstarts in particular. Twitter, an unprofitable short-messaging service, is valued at roughly $25 billion after its initial public offering last week. Pinterest, an image-sharing app, last month raised $225 million from investors who valued the company, which also has no revenue, at $3.8 billion.

Facebook is interested in Snapchat fewer young teens are using Facebook, while Snapchats young user base is rapidly growing.

Snapchat recently said its usage had nearly doubled, to 350 million messages or “snaps” per day, up from 200 million in June.

Would you have turned down $3 billion from Facebook?

From The Wall Street Journal.

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