Snapchat turns down $3 billion cash offer from Facebook

Wednesday, 13 Nov 2013 | 2:58 PM ET
People take pictures in front of the Snapchat headquarters in Los Angeles.
Patrick Fallon | Bloomberg | Getty Images
People take pictures in front of the Snapchat headquarters in Los Angeles.

Snapchat walked away from a $3 billion all-cash acquisition offer from Facebook, according to The Wall Street Journal.

The messaging app, which allows users to send messages that erase after six seconds, has been valued at $4 billion.

The company plans to hold out for an acquisition deal until at least next year, when it might have an even bigger valuation, said Evan Spiegel, Snapchat's 23-year-old co-founder and CEO.

(Read more: Wall Street into Snapchat, and regulators are on alert )

Facebook, which has built similar products to Snapchat for its platform, previously offered the start-up $1 billion, according to the report.

Facebook declined to comment on the matter.

Facebook is no stranger to large acquisitions. The social media giant bought Instagram for $1 billion last year.

Click here to read the Journal's full report.

By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.