Yahoo investing in Snapchat, reports say
SAN FRANCISCO - Flush with cash from its sale of Alibaba Group stock, Yahoo looks set to pour some of it into Snapchat, according to reports in The Wall Street Journal and The Globe and Mail in Toronto.
The Los Angeles-based online messaging app – which allows users to share photos and videos with others for a short set amount of time before they automatically delete -- would be valued at $10 billion. That's up from a $3 billion just last year, when Facebook expressed interest in buying the company.
A $10 billion valuation would make Snapchat one of the year's big successes in a year of soaring tech valuations typified by ride sharing app Uber, now valued at $17 billion. Snapchat has 100 million users worldwide, who send seven times that number of videos and photos daily.
Yahoo and Snapchat representatives declined comment.
Founded in 2011 by CEO Evan Spiegel, now 24, and a group of friends, Snapchat's booming growth reflects that of mobile messaging and communications apps at large. In February, Facebook plunked down $19 billion for WhatsApp, a deal that on Friday cleared major regulatory hurdles in Europe.
For Yahoo, leading a Snapchat round comes at a time when CEO Marissa Mayer – who realized $5 billion after the company's $1 billion investment in Alibaba in 2005 – looks to reinvigorate one of the Web's oldest names with a range of strategic acquisitions. In 2014 alone, Yahoo has either bought or invested in more than a dozen companies in the video streaming and mobile messaging space.