Tomahawk, WI 11/14/2013 (BasicsMedia) –  The world’s most popular social networking company Facebook Inc (NASDAQ:FB) is worried about decrease of teens on its network. The company is now seeking acquisition that would help it get back on its feet and reap the benefits of having a bigger number of young people on its platform. The Menlo Park, California-based company is said to be offering $3 billion to takeover mobile application Snapchat. This offer is almost four times what it offered for another mobile photo-sharing app Instagram last year. FB took Instagram for $700 million to increase its reach to young people.

Snapchat app allows people to share photos which appear briefly. It is one of the mobile apps which are witnessing an influx of young people exiting the larger networking platforms. Snapschat owners are reported to be dragging their feet in accepting the Facebook offer. This is why FB is willing to up its bid on the mobile App company if only that could help improve its chances of buying it. Failure by FB to takeover Snapchat would no doubt be a big blow to the California-based company in its spirited attempts to broaden its mobile presence. However, there are other options that it can go for such as WhatsApp and a host of other messaging apps. If FB succeeds in buying Snapchat, it would have mitigated the loss of its critical user base – young people.

The messaging App Snapchat was created in 2011 and boasts more than 200 million users. The app allows users to delete photos that they share in a matter of seconds after they are accessed.  Users are also offered tools to improve their photos such as drawing items or arrows on the snaps. These features have made it sort of a fraternity house for the teens. The fact that its platform is majorly youths also makes it an instant attraction for the young people avoiding moms and dad on such sites as Facebook or Twitter. Snapchat’s investors include Lightspeed Venture Partners, General Catalyst, SV Angel, Benchmark and Institutional Venture Partners.

Threat of messaging Apps

Mobile messaging App companies have become the greatest threat to established social networking sites. Facebook Inc (NASDAQ:FB) in particular is looking at the risk of losing huge dollars in revenue if teens exit from its platform continues. The company makes its money mainly from sale of ads on its networking platform.

In the last quarter reporting the largest social networking company stated that more teens were spending less time on the network. It thus seemed wise for the company to go into what has widely been seen as a copycat photo app Poke. This app though was expected to bolster FB’s position among teens it is largely viewed as a nonstarter considering that it has not been updated since its launch. Moreover, its popularity is nowhere close to where it was expected to rank, particularly in the U.S.

There is growing desire among the Facebook Inc (NASDAQ:FB) management that the company has to do all that is possible to win back teens. This means that the firm could be eye other messaging app startups outside Snapchat. At the moment Snapchat is telling FB to wait until next year when it can consider being a sell.

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