Snapchat turns down $3 billion cash offer from Facebook

People take pictures in front of the Snapchat headquarters in Los Angeles.
Patrick Fallon | Bloomberg | Getty Images

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.