Last year when Snapchat turned down a $3 billion dollar buyout from Facebook, we shook our heads in disbelief. Then Google offered the company $4 billion, and still no deal. Today it all makes sense though, with a new report from Bloomberg claiming the popular app could soon be worth a whopping $10 billion.
Snapchat is currently drumming up a new round of funding from investors including Alibaba, the Chinese e-commerce giant that’s set to hit the U.S. stock market later this year. The exact terms of the deal are unclear and could still change, but it seems likely Snapchat will be worth far more than either Facebook or Google ever offered in the very near future. Hitting $10 billion could also put the app in an exclusive class of highly valued startups like Uber and Dropbox.
It may sound strange to hear that one of Snapchat’s biggest investors is a Chinese online retailer, but Alibaba has been funding American startups since last year as part of a strategy to expand into the U.S. market. The company previously invested $250 million in Lyft and $206 million in subscription shipping service ShopRunner, but those deals could look tiny by comparison if Alibaba plans to put its full weight behind Snapchat.