Snapchat’s Two Options

Sell or Change

Snapchat has a window of 6-12 months to sell imo.

The growth and engagement the app is getting are very real, but so is the lack of a business model. Unlike Facebook and Twitter, Snapchat ads would not go well with users (or advertisers) and a “Premium” version may not be sufficient to declare a $5B valuation with a serious face.

Snapchat is incredibly valuable and hot right now (there is no doubt about that), but it is more valuable within another search giant or global social network than as a standalone product.

The window is closing.

If they don’t sell in the next year, then they better have a very different product within that same timeframe .

Snapchat is left with two options after saying no to Facebook: 1) Sell soon, or 2) dramatically change / expand the product.

We shall see what happens…