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Facebook to rival Snapchat with Slingshot

Hot Stock Minute

If you can’t buy it, make it.

According to The Financial Times, Facebook (FB) is reportedly developing a video-messaging service in which users can send each other messages that appear only once. The service, which is called Slingshot internally at Facebook, would rival Snapchat, the popular video-messaging service that Facebook reportedly tried to buy for $3 billion last year. A source told The Financial Times that Slingshot could debut this month, or Facebook could decide to abandon the project.

So, is making something yourself the next best thing to buying it? Host of Yahoo Finance's Breakout Jeff Macke spoke with Lauren Lyster about Slingshot and the idea of creating an alternative to Snapchat.

Regarding Snapchat's rejection of Facebook's $3 billion offer last year, Macke said, “I think Snapchat got a little greedy.” He also doesn’t think the company is as valuable after the company settled with Federal Trade Commission over allegedly taking users contacts data without permission and not disclosing that messages don't get deleted off devices.. He adds, though, that users don’t seem to be too upset about it. “We’re the post-privacy generation,” he said.

Macke said Facebook could probably come up with an app to overtake Snapchat, but he said the world's largest social network doesn’t have a great record of developing these things in-house. “So this will be a big test for them to see if their in-house development team has their act together,” he said.