Chinese eCommerce giant Alibaba invests $200 million in Snapchat
A mobile services empire in the works
Alibaba Group Holding Ltd is said to be investing $200 million in photo-messaging app Snapchat according to sources. The investment will mark the Chinese eCommerce giant's latest Silicon Valley deal as it continues to build its mobile services empire.
According to Bloomberg, the investment will make Snapchat's worth around the $15 billion mark, and place the four-year-old business amongst the top ranks of privately held startups. In 2013, Zuckerberg's Facebook attempted to buy Snapchat for $3 billion.
The Los Angeles-based company has around 100 million users in its network, and has recently increased its advertising potential – debuting new products to the likes of Universal Pictures, who are reportedly paying around $750k for ads on the video messaging platform. At the beginning of the year it also began to carry videos and articles from mainstream media outlets such as CNN and ESPN, aligning it with competitors Facebook and Twitter.
Alibaba handles more eCommerce business than eBay and Amazon combined. The Chinese giant is planning a strategic move to acquire more and more American business, offering American retailers new ways to sell to China’s vast and growing middle class. Alibaba have invested in a plethora of U.S. startups recently, such as rides-on-demand service Lyft and messaging app Tango. The focus on U.S. business is thought to be a strategic move to become the world’s dominant e-tailer.
If the $200 million Snapchat investment is accurate, it will mark Alibaba's biggest business investment in the U.S. so far...