Remember old Snapchat? (Photo: Digital Trends)
Profitless Snapchat is supposedly in talks with Chinese mega-investment group Alibaba for a massive round of funding that “may value” the app at $10 billion, Bloomberg reports.
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According to those ever-elusive people “with knowledge of the situation,” the terms of funding might change as the talks continue. The New York Times cautioned that the negotiations might not lead to a deal. Although Snapchat doesn’t rake in much (if any) revenue, Alibaba is stepping up its investments in apps as it preps for an IPO.
If the valuation is true, it makes Snapchat cofounder and CEO Evan Spiegel look reasonable for rejecting Facebook’s measly $3 billion (cash!) offer late last year. “I think trading that for some short-term gain isn’t very interesting,” he said in an interview with Forbes about the deal.
Alibaba and Snapchat both declined Bloomberg’s request for comment.
Source: Snapchat In Funding Talks With Alibaba, Could Reach $10 Billion Valuation