Business

Alibaba may be in funding talks with SnapChat

Image Credit: Eric Blattberg / VentureBeat

Chinese Internet giant Alibaba is reportedly in talks to finance self-destructing messaging app SnapChat, which may lead to a valuation of $10 billion, according to Bloomberg’s sources.

SnapChat previously turned down an offer from Facebook for $3 billion last November. As we reported then, founder Evan Spiegal said he wasn’t going to consider selling to another company until this year at the earliest.

The photo service has already seen investment from Chinese Internet group Tencent (a big player in games and other services), which contributed to a $50 million raise in December 2013. In total SnapChat has received $133 million in funding to date.

Alibaba’s interest in SnapChat may be an extension of its growing investment in social media. The company has toyed with social media, investing in one of China’s biggest microblogging platforms, Sina Weibo, and Tango, a messaging and calling service that also features games.

The Chinese Internet giant may also be trying to beef up its presence in the U.S. ahead of its initial public offering on the New York Stock Exchange, which rumors point to coming soon. The company has already invested in U.S. transportation company Lyft, and it also recently launched a U.S. marketplace called 11Main. SnapChat could be its latest bid to gain a foothold in the American market.

Talks are still ongoing, reports Bloomberg, and both companies have confirmed nothing.

When reached for confirmation, representatives from Alibaba declined to comment. SnapChat has yet to respond to our request for comment.

More information:

Snapchat is a photo messaging application developed by four Stanford students. Using the app, users can take photos, record videos, add text and drawings, and send them to a controlled list of recipients. Users set a time limit for how... read more »

Alibaba.com is a B2B e-commerce company. Alibaba’s primary business is to serve as a directory of Chinese manufacturers connecting them to other companies around the world looking for suppliers. According to iResearch, it was the lar... read more »

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22 comments
Andrew Glass III
Andrew Glass III

Snap chat still exists? I can't believe a novelty app would ever be so valuable. What's Yo's valuation now? $15B?

Elliott Hurst
Elliott Hurst

Sell already you greedy idiots! It's a chat app! Sell!!!

Everette Slocum
Everette Slocum

ahh,the app industry doesn't require one :) Source: Top VC's from Silicon Valley at Google 2011 i/o Conference.

Travis Root
Travis Root

Snapchat business plan: 1. Get a bunch of users 2. ??? 3. Profit!

Sean Porter
Sean Porter

Man I hate getting Link Baited. Click Baited bla lba

Joe Reis
Joe Reis

$10b for a dick pic app?

Alex Perez
Alex Perez

I'd (slowclap) if this happened. Millions of "ephemeral" (you're a dumb ass if you belive they AREN'T being stored!) snaps in the hands of the Chinese. #karma

Chris Diaz
Chris Diaz

all your newds belong to china now! lol