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

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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9 Comments

1. zig8100

Posts: 243; Member since: Dec 13, 2012

Damn I need to start making apps

2. sriuslywtf

Posts: 297; Member since: Jul 09, 2013

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

4. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

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

5. Napalm_3nema

Posts: 2236; Member since: Jun 14, 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.

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

3. sun0066

Posts: 246; Member since: Feb 12, 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

9. evarod48

Posts: 154; Member since: Oct 30, 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.

7. bugsbunny00

Posts: 2251; Member since: Jun 07, 2013

its valuable than facebook?

8. sipha

Posts: 439; Member since: May 12, 2012

Nope, facebook is around $200B lately!!

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