Yahoo Planning To Invest In Snapchat

Yahoo Planning to invest in Snapchat according to reports by Wall Street Journal on Oct 3. Yahoo is planing to invest into hot mobile messaging startup Snapchat following its investment in Alibaba the Chinese e-comerce giant. Snapchat lets users to send messages that disappear after a few seconds.

The report of Yahoo planning to invest in Snapchat came the same day that yahoo bought the startup behind mobile messaging app MessageMe for reported price to be in double digit millions. The team for MessageMe has joined Yahoo as said by Yahoo. Eight members of MessageMe team who built a mobile messanger app focused on personalization and creativity. MessageMe also confirmed the acquisition at its website and told users that the application will shut down in November to free the team to focus on building mobile communications products for Yahoo.Yahoo Planning to invest in Snapchat

The Californian Internet firm paid a billion dollars for 40% stake in Alibaba in 2005 which has paid back the investment many times over. Some reports earliar this year indicated that Alibaba is planning to invest in Snapchat, though the reports were not confirmed.

The approximate value of Snapchat is around $10 billion, although it is not confirmed yet that how much Yahoo will invest, as said by the Journal.

Snapchat was made by Stanford University students and released in September 2011. Snapchat became popular, specially among teens because it allows sending of text and photo messages that disappear seconds after being viewed by users. Snapchat has also been courted by other investors and buyers including Chinese Internet giant Tencent. According to US media reports Snapchat has rejected a buyout offer from Facebook, which offered $3 billion to Snapchat.

Snapchat

By the influence of money given by Alibaba’s stakes, Yahoo chief Marissa Mayer has been on buying spree in order to re-establish the company as an online venue for premium and personalized content as its Internet search service authority was taken by Google.

By investing in Snapchat Yahoo is looking for some popularity regain and to attract more users. Google is also planning to launch its own chat app so it is mainly a war of rivarly between the two giants. At one end Google has been on top and on other hand Yahoo is struggling to regain its popularity. So investing in Snapchat could be a healthier step for Yahoo as Snapchat is pretty much popular among the teenagers.

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