Snapchat Rejects Facebook’s $3B Friend request

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Nov. 14 (Bloomberg) -- Bloomberg News’ Matthew Campbell examines the reported $3 billion offer by Facebook for the Snapchat app in a bid to attract more teens. He speaks on Bloomberg Television’s “The Pulse.”

This is a defensive play from facebook.

They need to get the demo right, they need to maintain their status.

You buy at the up-and-coming apps.

For all its success and the genius of mark zuckerberg, facebook is a bit long in the tooth, is a 10-year-old company.

It was born in a world with no ipads, no iphones.

As a result, it has had more success lately.

Facebook has struggled to make the jump to a world where teenagers experience the internet through mobile devices.

Into that space, we have had interlopers, snapchat being one.

Anything that takes eyes off of facebook is potentially a threat to facebook.

Facebook needs to tell advertisers the way next money.

Our users look at us first thing in the morning, right before they go to bed, and for two minutes in between.

That is facebook path value proposition.

There are these popular services out there, facebook is prepared to pay top dollar.

Top dollar for a business with how many employees?

A couple dozen.

This is shades of what facebook did with instagram, they purchased it for $1 billion.

People think that was a smart move.

Facebook is about sharing photos.

There are other applications that could attract similar interest.

This shows how the app economy has changed.

Facebook was supposed to be a platform, the value proposition was this would be how you would experience or social world.

The smartphone is sort of the platform, facebook can the one application among many.

Snapchat is another.

Facebook has become an aggregator of these kinds of things.

Thomas does not need to innovate.

-- it almost does not need to innovate.

They have the big marketing, relationship with advertisers, suck in products.

Another thing interesting about facebook, it takes on a role as an authenticator.

A lot of these apps, spotify, tinder, a casual dating app, use your facebook profile to identify you and hook into their service.

Facebook plays a different role.

It is a good question whether it has the capacity to create new product itself or whether it will need to buy them going for.

Thank you very much, matt

This text has been automatically generated. It may not be 100% accurate.

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