One of the most intriguing things about Snapchat, the latest sensation in the social media environment, is the age of its top executives. The CEO and the Chief Technical Officer are below 25. Most interestingly, these young executives turned down the huge acquisition offer made by Facebook. Reports are that this took place at a time when they didn’t even have $1 in reported revenue.
From being nothing more than a trend, Snapchat has grown into a service with tens of millions of users in just a couple of years. These users send over 400 million images on the service in just a single day. Fascinatingly, investors are taking the company seriously and have invested over $120 million into it. The company is currently valued at over $2 billion, even though it still continues to generate no revenue.
What is the reason Snapchat is being considered to be a hot asset? The reason is that everyone sees this company as improving the trend of photo sharing beyond Instagram and building a new method of communication. Notably, Instagram was taken over by Facebook for $1 billion.
The standard Snapchat function is to enable users to share their pictures and videos that expire after they have been sent. It is up to the sender to determine how long the media can remain in the app. The e-mail and Twitter changed the way people “talked” and broadcast information respectively. Similarly, Snapchat has come to become a “language” of the young, in a short period of time.
Snapchat’s growth has drawn serious attention from the competition. Facebook’s failed acquisition offer is a clear indication that the social media companies desire what has been created by Snapchat. Even Google and Yahoo! are working on features that will encourage their users to communicate via photos.
At the same time, apps like Whatsapp, MessageMe and WeChat have been developed and are in use in different parts of the world. They are allowing users to send texts without all the charges, something that is disturbing to the phone service companies.