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Yahoo may invest in Snapchat

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Yahoo Inc. intends to invest in Snapchat, a popular app that allows people to share photos,videos and messages that self-destruct.

Yahoo made a large amount of cash by selling a portion of its stake in the Alibaba Group and and apparently wants to use some of that money to invest in the fast-growing startup.

Yahoo is one of many potential investors that Snapchat has had conversations with, including tow former investors, Institutional Venture Partners and DST Global.

By investing in Snapchat, Yahoo may be looking to repeat its success investing in Alibaba, though at a much smaller scale. The investment could give it access to the messaging phenomenon and help Yahoo become more relevant to young consumers.

The investment round would value Snapchat  at $10 billion, though it’s unclear how much Yahoo would invest. Last year, Snapchat was valued at $3 billion. Snapchat’s valuation has shot up tremendously in a very short period. The funding would likely make Snapchat one of the mostly highly valued startups in history.

Senior Writer


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