Rumor Round: Snapchat-Microsoft Acquisition, Snapchat Valued At $10 Billion
Snapchat is the best teen-attracter app having around 30 million user base. After rejecting the Facebook’s $3 billion acquisition offer, Snapchat CEO Evan Spiegel is constantly looking for investors and more services to make their company as big as possible.
According to latest rumors, Microsoft and Snapchat are holding merger talks. These rumors do not reveal any further details and we have not heard about why would Snapchat want that, but rumors are circulating around.
However, there is very little possibility of this deal going through as Snapchat doesn’t look like the company that would want to merge with big tech giants. There is also a possibility that the talks between Microsoft and Snapchat, which were actually about launching the app for Windows, are framed as acquisition talks.
Other rumors are about Snapchat’s efforts to raise more funding through some high profile investors. These rumors seem to be true because Spiegel looks like a person who wants to see his company succeed at higher level as depicted by his recent efforts about Snapchat Discovery.
Spiegel was reportedly holding talks with news agencies and professional content providers to launch a news network called Snapchat Discovery that would offer paid content to its users resulting in more revenue for the company.
Spiegel has been reportedly holding talks with investors to raise funding for his company. The investors include Alibaba (the talks have failed now), Kleiner Perkins Caufield & Byers, General Atlantic and Tiger Global. These are big names and if the talks succeed as per reports, Snapchat’s value as a company would sky-rocket.
The status of talks with General Atlantic and Tiger Global is yet unknown but WSJ is reporting that Kleiner Perkins Caufield & Byers — a venture capital firm from Silicon Valley — has agreed to invest in Snapchat resulting in $20 million raise.
“The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time,” Snapchat spokeswoman said.
Snapchat was valued at $2 billion last year which is indeed a nice figure for a startup, but the company lacks a business model. Luring more investors will not only help Snapchat find resources for its Snapchat Discovery service but also help in aiming for long term, which Spiegel pretty much intends to do.