Snapchat has reportedly turned down an offer of at least $3 billion from Facebook for its photo-messaging service, USA TODAY reported.
Multiple investors are wooing the Los Angeles startup to acquire its smartphone app, according to a report from The Wall Street Journal.
"We don't comment on rumors and speculation," Facebook spokeswoman Denise Horn told USA TODAY.
The purported $3 billion offer comes soon after Twitter's IPO last week; the formerly profitless site is valued at nearly $25 billion. Facebook, the social networking giant, has a market capitalization of more than $100 billion. Pinterest raised $225 million last month from investors who value the profitless company at $3.8 billion.
Two-year-old Snapchat has yet to make any profit from its photo-messaging app. In June, the company raised $60 million from investors, which brought the company up to an $800 million value.
The site founded by Mark Zuckerberg purchased Instagram last year for $1 billion. While Instagram is already a small company with fewer than 30 employees, Snapchat likely has around half that number.
According to The Wall Street Journal, Chinese e-commerce behemoth Tencent Holdings had offered to head an investment valuing Snapchat at $4 billion.
The report said an investment will probably not be considered until next year. A Snapchat spokeswoman declined to comment to the outlet.
While Snapchat hasn't yet gained any revenue, it has become popular with teenagers and young adults, who use the app to send texts and photographs that disappear after a few seconds.
Facebook is drawn to Snapchat because of the messaging service's popularity among smartphone users. The social networking site's share of revenue has increased through mobile advertising, but fewer teens have been using Facebook on their phones on a daily basis.
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