Snapchat could soon be worth US$10 billion
Published on Jul 31, 2014 10:06 AM
No wonder Instagram wants a piece of the ephemeral messaging pie with its new Bolt photo messaging app.
According to Bloomberg, Snapchat is reportedly talking to investors, including Chinese e-commerce giant Alibaba Group, to raise a new round of financing that could value the start-up at US$10 billion. ($12.45 billion). If this valuation turns out to be true, it would be a significant jump from the US$3 billion cash acquisition offer from Facebook that was rejected by Snapchat CEO and co-founder Evan Spiegel last year.
The Snapchat mobile app lets users send photos, videos and text messages to their contacts. Users can set a time limit before these messages become expired and deleted from the recipents' devices. Up to 700 million photo and video messages were sent daily via the app in May, up from 200 million last November.