In 2011, Evan Spiegel and Bobby Murphy launched the photo and video application “Snapchat”, which within short years achieved a great spread, and in 2013 the two rejected an offer of three billion dollars from Facebook to buy their application, which surprised many, but What is really surprising is how the value of this app has exceeded a billion dollars.
In an attempt to answer this question, Billy Gallagher traces the history of the application, which was launched by three students, Evan Spiegel, Bobby Murphy and Reggie Brown, in his book “How to turn down a billion dollars: the story of Snapchat.”
The beginning was when Brown went to Spiegel, and told him his idea for a new application that allows the ability to delete images after viewing them for 24 hours. Spiegel liked that idea, and then we hired Murphy, who had experience in software, and the three launched the application from inside Spiegel’s living room in July 2011. His name was initially “Pecabo”.
Gallagher addresses in his book the controversy that emerged later, as Spiegel had a clear role within the company, and was responsible for the design and ideas, while Murphy was responsible for the software, while Brown was not playing a major role, and despite that he demanded to renegotiate his share in the company And that was the beginning of the controversy that ended with Brown’s exclusion from the company.
But when the value of the company reached one billion dollars, Brown filed a lawsuit, which ended with him obtaining about 160 million dollars, and an acknowledgment from the company that he participated in the early stage of establishing the application, and Gallagher also tells in his book in detail how Mark Zuckerberg, the founder of Facebook, communicated with Spiegel, and offered He has to take over Snapchat.
And this was after the company acquired the Instagram application for one billion dollars, and Gallagher tells the hidden side of the story. When Spiegel objected to the offer, Zuckerberg grabbed his phone to show Spiegel an application that Facebook was about to launch, the “Poke” application, which It was a similar version of Snapchat.