With Snapchat reportedly turning down acquisition offers in the $4 billion range, it now feels that Facebook and Google got a pretty sweet deal to purchase Instagram and Waze for approximately $1 billion apiece. Will the next wave of acquisitions start from $4 billion?

Is $4 Billion the New $1 Billion?

Snapchat says its users post about 400 million total “snaps” a day. If each individual user posts about four a day, that would mean there would be about 100 million users, Backus says. If we use our mid-tier valuation for companies like Facebook and Twitter, or $100 per user, that would put Snapchat’s value at $10 billion.