Apparently, Facebook had been wining and dining Snapchat in recent weeks to discuss the all-cash deal, which would have been Facebook's largest acquisition ever. Snapchat, which allows consumers to send smartphone photos which automatically disappear after a few seconds, is popular among teenage users. After all, it is the ideal sexting tool where you do not have to worry about your parents finding what you sent.
Facebook needs something to improve its take up by young teenagers who are getting a little bored with the site. Still, it is unusual that a start-up turns down an offer like that and it might mean that Snapchat has ideas of its own which are worth more than $3 billion.