SnapChat CEO Evan Spiegel
SnapChat CEO Evan Spiegel

Knowing your brand’s worth is an important lesson when it comes to brand management and that is the lesson SnapChat is sending today when they company said no to $3 billion from Facebook.

This is not the first offer Facebook has offered to the social app. Last year, the offer was for $1 billion dollars, it was then also refused, because the founder, Evan Spiegel, felt the social app which lets people share pictures and delete after it has been viewed. Apparently, even after the offer has tripled, he still feels they are worth more.

Facebook is willing to put up that kind of cash, because it has finally admitted to itself that they are losing younger users, which their key demographic that it was founded on. Teens and young adults are moving away from Facebook and migrating towards SnapChat. SnapChat’s users have grown from 200 users in June 350 users in September, which is exactly why the company feels it deserves a high valuation.

Obviously, younger users have migrated to this social app, because there is a notion of privacy and discretion with the photos immediately deleting after it is viewed. That privacy feature is something the young users cannot get with Facebook. Facebook not only has many parents as users, but has also many sharing options and has recently redone their privacy options. It may not be just about the money. SnapChat and Facebook’s brand images and goals may not align to make a good partnership.

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