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Comment by nhance | Hacker News Reader

I cannot understand the mindset of someone who turns down an offer of $3 billion dollars for their company that has no path to revenue, let alone profit.

IMO, this is why you avoid investment money. Can you imagine VC "partners" forcing you into a decision like this?

$3 Billion dollars _IS_ changing the world. How much more could you possibly want? What kind of future is preferable to the one you'd have had you taken this deal?

Can anyone make sense of this?

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> for their company that has no path to revenue, let alone profit.

This is what baffles me. I cannot understand it for one second.

You literally created 3 billion dollars out of nothing. What can you possibly have up your sleeve?

What kind of future is preferable to the one you'd have had you taken this deal?

The one where you sell for $4 Billion dollars.

I feel like that is a valid argument when talking 7 figures. "I'll decline $3 million because I feel 4 is coming". This makes sense because we are talking about real difference making dollars. But the difference between $3 billion and $4 billion to 2 people is not going to make a difference to your lifestyle, maybe your children's, children's, children's lifestyle.

Depends what they want to bankroll. Sure, it is enough to be sitting on a beach for generations, but they might be looking at sending robots to fetch asteroids, or something equally outlandish. Then betting on an extra few billion might make a lot of sense. Also, there is the possibility that shouldn't be discounted when people refuse to sell, which is that they actually have a plan and want to try and execute it.

Very valid arguments. I'm very curious to see what transpires here, whether Facebook will come back with a better offer or not.

How much risk is worth a 33% return?

How much risk is there in not taking the offer? They're not making a $3Bn counter-bet.

The idea that they have no path to revenue I think is become a common theme but not entirely true.

More like a common assumption.

Zuck turned down a billion. How much is Facebook worth now?

Apples and oranges. SnapChat product != Facebook product.

Exactly. SnapChat is much more important to me and my social group than Facebook is.

Would you ever make an in-app purchase on SnapChat? Or be willing to wade through an advertisement to get to the snap? For how long?

The product is different.. maybe. But that is not the point.

OP of my reply was talking about how crazy it is for Snapchat to reject a $3 billion buyout offer. My reply was that Zuck just a mere 7 years ago rejected a $1 billion offer and people thought he was crazy for doing that. He obviously wasn't.

I understand that part. However, my point was that the Facebook product in itself has many more opportunities for monetization than SnapChat. SnapChat has eyeballs, but no data, no platform, no secret sauce. I mean, apart from in-app purchases and/or advertising, what can you think of that could generate revenue for them? Facebook, even 7 years ago when Zuckerberg turned down $1B, had much greater potential.

117.24B according to Google.

He tried to sell for $75m in early 2005. Then for $750m in late 2005. Apparently a lot of luck mixed with a lot of greed turns anyone who succeeds in to a savant.

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