Zuck reportedly approached Evan Spiegel about a possible acquisition less than a year before Snap went public

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Zuck reportedly approached Evan Spiegel about a possible acquisition less than a year before Snap went public

Evan Spiegel

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  • In 2016, Facebook CEO Mark Zuckerberg reached out to Snap CEO Evan Spiegel to discuss the possibility of an acquisition, according to a Wall Street Journal report on Sunday.
  • Snapchat infamously turned down a $3 billion acquisition offer from Facebook in 2013.
  • Facebook COO Sheryl Sandberg also reached out to Snap board members to determine their interest in a possible acquisition, according to the report.
  • An exact purchase price was not discussed and no formal offer was made at the time.
  • The talks occured right as Snap was gearing up for an IPO that it expected to give it a $25 billion-plus public valuation. Today, Snap's market cap is around $6.5 billion.

Snapchat infamously turned down a $3 billion offer from Facebook in 2013. But according to a Wall Street Journal report on Sunday, that wasn't the only time Facebook tried to buy Snapchat.

In mid-2016, Zuckerberg reached out to Snap CEO Evan Spiegel to discuss the possibility of buying the Santa Monica- based company, less than a year before its March 2017 IPO. But those attempts were dismissed by Spiegel, according to the Journal's sources.

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The Journal also reports Facebook COO Sheryl Sandberg reached out to Snap board members to measure their interest in a possible acquisition around that time.

An exact purchase price was not discussed, and according to a person familiar with the matter from the report, the 28-year-old CEO never received a formal offer from Facebook during the discussions. The person close to Speigel also said he has no regrets that the deal didn't materialize.

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Around the time of the talks in 2016, Snap was expecting to IPO at a $25 billion-plus valuation, according to the report. Today, almost two years after its 2017 IPO, its market cap is around $6.5 billion.

Read more: FBI agents reportedly visited ex-Snap employees at home as part of an investigation into IPO disclosures

The Journal report on Sunday also highlighted the recent struggles for Snap, including a botched app redesign, the departure of key executives, and users leaving by the millions. Last Friday, Snap's stock closed below $5 for the first time.

Read the full Journal report here.

Spokespeople for Facebook and Snap did not immediately respond to a request for comment from Business Insider.

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