Snapchat has added Yahoo as an investor in a financing round that would value the Venice startup at $10 billion, Bloomberg said Wednesday.
The monster round is reportedly still in play. The photo and video messaging app has the opportunity to raise a huge amount of capital as it answers critics’ concerns over its revenue model. Snapchat introduced its first ad this past weekend, saying on its blog that it needed to start making money.
The funding is a smart play for Yahoo, which is flush with cash from its investment in Chinese Internet Alibaba, which went public last month. Yahoo also stands to benefit from Snapchat’s young appeal.
Snapchat and Yahoo representatives did not respond to requests for comment.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Yahoo Reported Eying Stake in Snapchat
- Snapchat CEO Says Ads on Their Way
- Snapchat Valued at $10 Billion with New VC Investment
- Snapchat to Roll Out First Ads
- Snapchat's Letting You Create Geofilters
- Snapchat’s Money VP Leaves
- Snapchat Expands Our Story with ‘Live’ Section
- Snapchat Accused of Misusing Model Photos