Facebook is no stranger to billion dollar acquisitions. The social network already spent $1 billion to acquire Instagram in the past, which appears to have turned out relatively well. Now Facebook has another site in its sights, if the latest report from the Wall Street Journal is to be believed. Apparently, Facebook attempted to acquire SnapChat for a whopping $3 billion; however, the social network was politely turned down. This means that the folks at SnapChat believes the company is worth more than the $3 billion Facebook is willing to offer.

The Wall Street Journal did not report whether SnapChat asked for more, so it's possible Facebook might or might not go forward with its plan to grab SnapChat.

At the moment, SnapChat, which lets the user snap a photo or a video, add a caption, and share it with friends for up to 24 hours hours after which it disappears, has over 100 million users who send more than 350 million shots or videos of themselves on a daily basis. From the numbers, it is clear why Facebook wants to acquire SnapChat as it is the place most teens are finding attractive. And, Facebook seems to be losing its appeal to the younger generation, per latest reports.

Wall Street Journal reports that SnapChat CEO Evan Spiegel is not interested in considering selling SnapChat at this moment in time. Spiegel will likely consider such things in the future as he seems more inclined to sell the company whenever its value has risen. It could be a smart move on his part because if SnapChat is able to increase its user-base by 2014, it is possible Spiegel could send the company off for more than $4 billion. Or even mull IPO.

However, it might also be a bad move because growth might not happen and Facebook could very well move on by the time SnapChat is ready to put itself on the market. Remember how Yahoo spurned Microsoft's advances? Furthermore, there could be increased competition from the likes of Shots of Me, a selfie app that is backed by popular pop star, Justin Bieber.

This isn't the first time Facebook attempted to acquire SnapChat. According to the Business Insider, the social network offered SnapChat $1 billion in the past, but it was rejected. So, it seems Facebook actually sweetened its offer which, unfortunate for the social network, wasn't sweet enough for SnapChat forced the $3 billion bid.

At the moment, SnapChat has no revenue model, so the company needs to think this through because unless it can come up with a way to monetize its users, the best option is to sell itself to the highest bidder.

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