> I am making the claim that SnapChat is not searching for a business model, but rather an exit.
And you base that on the fact that they just declined $3B from FB, and presumably $4B from Google.
Sure, they built all that service to decline both offers and close down the doors. Sure, Snapchats owners and VC are mentally ill and they declined buyouts because they are not searching for a business model themselves.
There's no reason to think that they're planning to build a real business. People build companies to flip all the time. Sometimes they turn down offers because they think they can get a better deal later. Sometimes they're wrong, and end up deeply fucked. The stakes here are higher than normal, but the patterns are the same.
Note that they don't have to be mentally ill to turn down a big offer. They could just be young, foolish, and arrogant. College-age entrepreneurs are known for many things, but humility and wisdom are not items typically mentioned.
You aren't taking into account the value of money to people that are already rich.
Also, they have the scale to start testing monetization, but they are not, because they'd rather increase the value of their exit to an acquirer by growing users.
And you base that on the fact that they just declined $3B from FB, and presumably $4B from Google.
Sure, they built all that service to decline both offers and close down the doors. Sure, Snapchats owners and VC are mentally ill and they declined buyouts because they are not searching for a business model themselves.
/sarcasm.