Leaked Sony Emails Reveal What Happened When Snapchat Turned Down Billions Of Dollars From Facebook
Some people thought Snapchat and its CEO Evan Spiegel, now 24, were insane. Others thought it was a brilliantly gutsy move to build a great company alone.
So why did Spiegel and Snapchat really turn down Facebook? And who leaked the deal to the press? And what was the offer amount really?
A bunch of those questions are discussed in dozens of emails sent between Sony, Snapchat board members, and Snapchat's CEO. The emails were leaked as part of a massive attack on Sony's email systems, which has unearthed unflattering emails about actresses and executives already.
The price Facebook offered: More than $3 billion
It sounds like it was more than $3 billion. Malcolm Gladwell sent an email to Snapchat board member (and Sony Entertainment CEO) Michael Lynton asking if the company was crazy to turn down $3 billion. Lynton replied:
How much Spiegel would have gotten if he had sold: ~ $1 billion
It sounds like $1 billion. One email written by Benchmark's Mitch Lasky, who sits on Snapchat's board, wrote about it in a ticked-off email about a botched deal with Tencent:
Who leaked the deal to the press? Zuckerberg blames Snapchat
Understandably, Zuckerberg wasn't thrilled when news of Snapchat's refusal hit the press. According to an email written by Lasky, Zuckerberg pulled Snapchat investor and early Facebook employee Matt Cohler aside and accused Snapchat of leaking it to boost fundraising efforts. From Lasky's email:
Spiegel said he had already been texting with Zuckerberg and agreed to apologize.
So, just how difficult was it for Snapchat to turn down Facebook's multi-billion-dollar offer? Very.
As you can imagine, it's not easy to turn down $1 billion+. There's no email from Spiegel explaining his thought process, but Mitch Lasky explains what he observed from the young founder in one leaked document. He also says Spiegel wasn't thrilled with the offer. According to Lasky: