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Is Snapchat The Next $10 Billion Startup?

Snapchat may have spurned 10-figure acquisition offers, but its valuation could soar way above that with a new round of funding.

Is Snapchat The Next $10 Billion Startup?
[Image via Snapchat]

Snapchat’s next round of financing could value the startup at $10 billion. Bloomberg reports the ephemeral messaging app is in ongoing talks with investors, including China’s largest e-commerce company, Alibaba.

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Last fall, Snapchat reportedly spurned 10-figure acquisition offers from Facebook and Google. But when Snapchat insisted it wasn’t for sale, companies–including Facebook, Instagram, Tinder, and Path–simply began copying its model.

Back then, critics said Snapchat, which sees more than 700 million “snaps”–photos and videos that disappear after they are views–shared each day, made a bad move by rebuffing these offers, but its valuation could increase by an order of magnitude if this deal with Alibaba goes through. Of course, nothing is finalized yet and the terms or funding amount could change.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal.

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