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Snapchat being valued at $10 billion; Yahoo plans to invest

Posted: , by Michael H.

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Snapchat being valued at $10 billion; Yahoo plans to invest
Remember late last year when there were stories going around about how Snapchat turned down acquisition offers from both Facebook and Google that were in the neighborhood of $3 to $4 billion? There were many who called Snapchat crazy, mostly due to security issues around the same time, but CEO Evan Spiegel knew his company was worth more. Seems he was very right.

According to The Wall Street Journal, Snapchat has been working on gathering new investments from various venture-capital firms, money managers and companies, and it has Yahoo interested. It seems that Yahoo is getting ready to invest $20 million into Snapchat at a valuation of $10 billion. So, obviously, Spiegel was right to rebuff the purchase offers, even though Snapchat still doesn't have a monetization strategy. It does have one of the most popular social networks with teens though, and that can be huge. 

This could also be another solid investment by Yahoo. Back in 2005, Yahoo invested $1 billion for a 40% stake in Chinese e-commerce group Alibaba; and, as Alibaba's recent successful IPO showed, that was a great move, proving to be worth tens of billions. Yahoo even made about $5 billion by selling part of its stake. Snapchat likely won't be that big of a success, but time will tell. 

source: WSJ

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posted on 03 Oct 2014, 21:06 4

1. zig8100 (Posts: 236; Member since: 13 Dec 2012)

Damn I need to start making apps

posted on 03 Oct 2014, 21:12 1

2. sriuslywtf (Posts: 297; Member since: 09 Jul 2013)

No! you need to work 8 - 5 to be a billionaire. *quietly codes in my office computer.

posted on 03 Oct 2014, 22:46 1

4. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)

The sad thing is that most people are too busy working to make any money.

posted on 03 Oct 2014, 22:48

5. Napalm_3nema (Posts: 2236; Member since: 14 Jun 2013)

That's because you value food, shelter, and Mt. Dew too much. If you would just give all of that up, you could possibly be a billionaire.

posted on 03 Oct 2014, 22:56 1

6. PapaSmurf (Posts: 10457; Member since: 14 May 2012)

You'd die within a few days without food or water so I wouldn't do this at all.

posted on 03 Oct 2014, 21:45

3. sun0066 (Posts: 168; Member since: 12 Feb 2011)

Incredible it didn't look to me that so many people are using this apps , if I were them I would try to sell asap before be too late and the app be old story

posted on 06 Oct 2014, 10:44

9. evarod48 (Posts: 154; Member since: 30 Oct 2012)

this app has the power to stay for a long time though, as it is the easiest way for people to send videos to multiple people easily. No other service has been able to do what snapchat can in a more efficient way. Snapchat will be around for a while without a doubt.

posted on 03 Oct 2014, 23:05

7. bugsbunny00 (Posts: 2195; Member since: 07 Jun 2013)

its valuable than facebook?

posted on 04 Oct 2014, 01:11

8. sipha (Posts: 438; Member since: 12 May 2012)

Nope, facebook is around $200B lately!!

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