Now the almighty Facebook has gone a step further in trying very hard to take over our media space, and also putting Snapchat in the group. Recall that Facebook once made an unsuccessful bid for snapchat – this may be why they are hell bent on putting an end to that service.
Well, today, it isn’t snapchat they are bidding for, its a snapchat-like app, Snow. Though, according to reports, this bid too was unsuccessful just like the first.
Snow is a Snapchat-like service from Naver, the $25 billion-valued Korean firm behind chat app Line. The app currently has around 80 million downloads, and it is adding around 10 million more each month, according to reliable reports. That growth has also encouraged acquisition interest from Tencent — the maker of blockbuster chat app WeChat — Alibaba and others.
“It’s true that Snow is receiving love calls from various companies,” this was as quoted from a representative from Never. Despite admitting that there are offers from various companies, the names of the bidders were not mentioned.
The app first grabbed attention when it raced up Android and iOS app store rankings in Korea, Japan and China, collecting up to 30 million downloads. It is also believed that Snow and Naver were taking advantage of Snapchat’s apparent lack of interest in Asia, which only helped to heighten awareness of the app.
Sometime later, Facebook CEO Mark Zuckerberg got wind of Snow and contacted Naver Chairman Hae-Jin Lee over the phone with an offer to acquire it. Naver saw Line raise over $1 billion in a dual Japan-U.S. IPO in July of this year, and Lee rejected Facebook’s overtures because he believes Snow has the potential to become a similar success.
Not also forgetting the fact that Facebook tried to buy snapchat for $3 billion three years ago, a bid that was rejected by the founder, Evan Spiegel. At that time, one would think new was crazy for rejected a mouth watering offer, but I guess his gamble has paid off considering that Snapchat is gearing up for an IPO next year that could value the company at around $25 billion.
I guess the founders of Snow in Asia are also ready to take a gamble similar to Evan Spiegel’s. But if it would pay off is what we don’t know.
And come to think of it, what’s with Facebook and trying to buy up potential threats? I am of the opinion that such moves aren’t healthy for business, what do you think?
Photo credits; TechCrunch.com