Snapchat has reportedly turned down a $3 billion buyout offer from Facebook as the startup considers other potential buyers. Facebook's interest is seen as a move to cover its flank and snare younger users as other social networks grow in popularity. "Snapchat has traction with a piece of the market. If Facebook buys them, they mitigate some risks that consumers spend more time off of Facebook's platform and are outside the reach of their sales efforts," said Brian Wieser, an analyst with Pivotal Research Group.

Related Summaries