Reuters - Video

EDITION: U.S. | U.K. | IN

Technology

Snapchat's multi-billion dollar gamble may be paying off

Wednesday, Aug 27, 2014 - 02:00

New investments into messaging start-up Snapchat put its valuation close to $10 billion, according to the Wall Street Journal, joining other hot startups like Uber and AirBnb. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

Playing hard to get- may already be paying off for Snapchat. After reportedly turning down a measly $3 billion offer from Facebook last year- the company may now be worth close to $10 billion, after venture capital firm Kleiner Perkins has agreed to invest up to $20 million in the instant messaging start-up according to the Wall Street Journal. Chat apps are hot says Reuters' BreakingViews Rob Cyran: SOUNDBITE: ROB CYRAN, COLUMNIST, REUTERS BREAKINGVIEWS (ENGLISH) SAYING: "You know you saw Whatsapp. Facebook bought it for $19 billion. And it seems like when you get a lot of users and things grow fast they are worth a lot of money. It's a question of you know, can you actually turn these users into dollars. You know Facebook's done it. Twitter's kind of doing it a little bit. Can Snapchat do it? I have no idea. But they haven't done anything so far." "So far" being key. Investors are after eyeballs- teens especially-because that's what advertisers want. Manhattan Venture Partners' Max Wolff: SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "They are fast and early adopters and every product category in the world wants to show them ads. So sending different kinds of messages, charging a premium for those." He says estimates of 100 million users underestimate the incredible value proposition of the Snapchat user- because many send over a hundred messages daily. And while Snapchat is a good candidate for an IPO- Wolff has a list of players who could snap this one up, without looking too hard at the price tag. SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "You are looking at the Microsofts- much rumored to be looking at Snapchat by the way. You are looking at Alibabas. You are looking at people like Google, folks like Apple. Really you have to have a huge treasury. You have to have tons of cash. You have to have very valuable shares and you have to be a little bit desperate to make sure you get those users and someone else doesn't." Snapchat has now entered a select $10 billion valuation club- joining car-ride service Uber and room rental service AirBnB.

Snapchat's multi-billion dollar gamble may be paying off

Wednesday, Aug 27, 2014 - 02:00

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)