Yahoo is reportedly set to continue its recent investment spree by pouring millions into instant messaging app Snapchat.
According to the Wall Street Journal, the company could invest as much as $20m into the photo and video sharing app as part of Snapchat’s latest funding round, which could valuing it at more than $10bn.
Yahoo’s investment comes after it completed the sale of its holdings in Chinese ecommerce giant Alibaba, which recently underwent one of the largest IPOs in history. Yahoo co-founder Jerry Yang bought a 40 percent stake in Alibaba for about $1bn in 2005, part of which was sold last month for more than $9bn before taxes.
Both Yahoo and Snapchat declined to comment on the speculation.
Under CEO Marissa Mayer (pictured left), Yahoo has invested in a string of companies in recent years as it looks to stay relevant in a crowded marketplace.
Last week, the company announced that it had acquired mobile-chat application MessageMe for around $12m. The app allows users to send alerts using emoticons and stickers to one or many friends on their smartphone.
The company also notably acquired blogging service Tumblr for about $1bn last year as part of a transition towards becoming more of an all-round advertising and content provider, following the closure last week of its original search function, which had been in operation for over 20 years.
Snapchat, developed in 2011 by a group of Stanford University students, reportedly turned down a $3bn cash offer from Facebook last November, as CEO Evan Spiegel looked to hold out for additional investment in order the further grow the company.
The company records little revenues, but has benefitted from a being part of a series in major investments in messaging and social media services, including Facebook’s $11.4bn acquisition of WhatsApp, which is set to be completed within the next few weeks.
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