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Re:Snapchat Spurned $3 Billion Acquisition Offer from Facebook by pakitan on Wednesday November 13, 2013 @02:27PM (#6727744)
This press release explains the method of valuation:

http://37signals.com/svn/posts/1941-press-release-37signals-...

"When it comes to valuation, making money is a real obstacle. Our profitability has been a real drag on our valuation" :)

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