Yahoo is reportedly preparing to invest £12 million ($20 million) in Snapchat.
Despite not yet having a source of revenue, more than 100 million users use the app – which is apparently enough to convince companies to spend vast sums out on the three-year old startup. Yahoo’s move follows an almost identical investment from venture capital firm Kleiner Perkins Caufield and Byer in August. The Wall Street Journal reports that California-based Yahoo CEO Marissa Mayer will invest £12 million ($20 million) in the three year-old tech startup Snapchat. If true the investment would value the company at £6 billion ($10 billion) The move comes after a similar, albeit much larger, investment in Chinese technology firm Alibaba reaped huge dividends for Yahoo, with its $1 billion investment in 40 per cent of the company in 2005 now valued at tens of billions of dollars.