Yahoo set to invest in Snapchat

Yahoo is planning to invest millions of dollars in mobile messaging service Snapchat, which may value the start-up at about $10 billion, reports say.

Snapchat allows users to send images and videos that “disappear” seconds after being viewed.

The company is said to have rejected a $3 billion takeover offer from Facebook and other tech behemoths, including China’s Alibaba and Tencent groups in recent years.

Yahoo and Snapchat refused to comment.

According to the Wall Street Journal, Yahoo may invest about $20 million in Snapchat’s next funding round after cashing in from its stake in e-commerce giant Alibaba.

In 2005, Yahoo co-founder Jerry Yang bought a 40% stake in Alibaba for about $1 billion. It sold part of that stake during last month’s initial public offering, earning more than $9 billion before taxes.

Yahoo has been on an acquisition spree under chief executive Marissa Mayer, who has been looking to move it away from its reliance on search and make it more of a content provider.

Since joining in 2012, Marissa Mayer has overseen more than two dozen deals aimed at turning the company around.

Yahoo is planning to invest millions of dollars in mobile messaging service Snapchat

However, she has recently come under pressure from activist investor Starboard Value.

Starboard Value has been calling on Yahoo to halt its spending and consider combining with online rival AOL.

Last week, Yahoo bought mobile-chat application MessageMe, which allows users to ping one or many friends on their smartphone using emoticons and stickers.

Marissa Mayer also acquired blogging service Tumblr for about $1 billion last year.

MessageMe has said it will shut down in November, so that its eight-person team can work on mobile products for Yahoo.

Snapchat was created by a group of students at Stanford University in 2011 and quickly became popular among teens.

Facebook is now testing a similar feature that allows users to schedule the automatic deletion of their posts ranging from one hour to seven days.

Snapchat, which has little to no revenue, reportedly rejected Facebook’s $3 billion offer last year for being too low.

However, a tech boom in Silicon Valley has seen several privately owned start-ups receive eleven-digit valuations, including house-sharing company Airbnb and private car-booking application Uber.

MrKOpJ1Wxnk
Nancy Clayson

Nancy is a young, full of life lady who joined the team shortly after the BelleNews site started to run. She is focused on bringing up to light all the latest news from the technology industry. In her opinion the hi-tech expresses the humanity intellectual level. Nancy is an active person; she enjoys sports and delights herself in doing gardening in her spare time, as well as reading, always searching for new topics for her articles.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago