I am definitely one of those people who dont "get" snapchat. But as far as I can tell, running a social messaging service is not a long term business with the way the internet iterates currently.

Wouldnt it make more sense to take the 3 bils and start the business with more meaning and a longer term outlook?

They should turn down the $3 billion, yes. Unless what they've built is only worth 1/10th to 1/100th of that. If they reject such lofty valuations, rather than a small 10-20% bump, then they've been made into fools. There's a difference between selling out and making out.