Snapchat turns down $3 billion cash offer from Facebook
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.