Will Snapchat disappear like the $3 billion it turned down?

18 Nov

snapchat

I have been learning about investing for about 10 years now. One of the biggest lessons I have learned is about greed. Greed makes people do all sorts of crazy things.

Greed makes them take risks they shouldn’t. Greed makes them not fold when they should. And greed makes them too damn arrogant.

I have read the stories about Facebook offering Snapchat $3 billion and Snapchat turning it down. Facebook had hoped the idea of images, videos and stories that fade after being viewed might have helped them attract teenagers since they are having problems attracting them.

Some called their move crazy. Others believe all of the press Snapchat received will result in a bigger offer.

Maybe. But none of us are fortunetellers.

Now that they turned down the money, investors will be carefully studying their every move. From revenue to user increase, they will be monitored. And here is where they will sink or swim. Coming up with a brilliant idea is hard. Being able to successfully run your very first company estimated  to be worth $3 billion is no easy feat. And if it’s not done well, Snapchat will simply disappear, too.

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