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Yahoo Investment Could Value Snapchat at $10B

by Jacob Kleinman | October 3, 2014October 3, 2014 7:00 pm PDT

Snapchat

Snapchat still doesn’t make any actual revenue off it 100 million active users, but that hasn’t stopped other companies from valuing the messaging app at several billion dollars. Now it looks like Snapchat could be headed to a valuation of $10 billion with a little help from Yahoo, according to a new report from The Wall Street Journal.

Snapchat is apparently closing in on a $20 million round of fundraising, and Yahoo may be looking to get in on the action. The struggling Internet giant just made several million dollars thanks to its early investment in Alibaba and the Chinese company’s recent IPO. It makes sense to funnel that cash into another growing tech firm, and for now it sure seems like Snapchat has nowhere to go but up.

Yahoo might not have the deal locked up just yet though, with multiple investors looking to fund the popular messaging app. So Snapchat doesn’t necessarily need Yahoo to hit that $10 billion valuation as long as some other company can fill the void. Still, an investment from Yahoo could also generate even more buzz for Snapchat, which never hurts.

The real question is when Snapchat will have to deliver on those investments and start turning a profit. The service is ad-free for now—not counting the occasional spam attack—but we wouldn’t be surprised to see uninvited brands show up in our inbox in the near future.

WSJ Business Insider

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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