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Yahoo! Inc. Looking At Snapchat Investment

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According to The Wall Street Journal, Yahoo! Inc. (NASDAQ: YHOO) is looking to invest in Snapchat, three people familiar with the matter said.

The company may be seeking to deploy some of the cash it raised from the Alibaba Group Holding Ltd (NASDAQ: BABA) investment in the fast-growing instant messaging startup.

While it wasn't clear how much Yahoo was looking to invest in the next round of funding for Snapchat, the total value of Snapchat is likely to be in the $10 billion range. Snapchat could become a good strategic fit for Yahoo, as it seeks new channels to distribute its content, although some question the $10 billion valuation of Snapchat as extreme.

Shares of Yahoo were trading slightly lower following the announcement, although still higher by 1.6 percent at $41.15 on the day.

Posted-In: SnapChat Wall Street JournalNews Media

 

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