Snapchat 'worth $15bn' after Alibaba invesment
- Alibaba is investing $200m in Snapchat
- Snapchat value $15bn
- Snapchat was first released in 2011
- Share price stands at $81.99
- Snapchat, which allows its 100m users to send messages that disappear in seconds, had sought capital to extend its core service
Alibaba is investing $200m in Snap Chat, boosting its current valuation of $5 to $15. The funding from the Chinese ecommerce company, first reported by Bloomberg, means that Snapchat’s worth has increased by $5bn in a matter of months. It dwarfs the $3bn offered by Facebook for the company in late 2013.I think that snap chat as an organisation will not do well in a few years, people are starting to drift away from using snap chat and is a dying social networking platform. Snapchat have no way of income as the services they provide are free and ad less, therefore the company is only supported from funds from the bank. Future development can show that the business can be profitable when a subscription model or adverts start to appear.
No comments:
Post a Comment