Snapchat’s move to rebuff a $3 billion acquisition by Facebook may have seemed a complete folly up until recently, but Snapchat could have made the right decision. According to a recent report from Bloomberg, the messaging application may now have a value of $10 billion, as it continues rounds of talks with several investors – Alibaba among them – about additional funding for the burgeoning company.
While definitely surprising, we’ve heard of Snapchat’s $10 billion valuation more than once before. In the past, tech website TechCrunch received information from various anonymous sources that had this figure confirmed. There was also word that Snapchat was even in discussions with Google about a possible deal.
Notably, WeChat developer Tencent, which also happens to be one of Alibaba’s competitors, is covertly investing in Snapchat – making this deal all the more interesting, especially if it ended up offering one or the other a more significant share of the company.
Bloomberg noted in its report this morning that aside from Snapchat, there are other technology companies that belong in the $10 billion valuation club. Examples of such companies are Dropbox and Airbnb. Uber, on the other hand, has a massive valuation of $17 billion.
So far, Snapchat has raised over $133 million in outside investment from Lightspeed Venture Partners, Institutional Venture Partners, Benchmark, General Catalyst Partners, SV Angel, and the aforementioned Tencent.