Tencent (TCEHY) is considering an investment in ephemeral photo messaging app maker Snapchat, The WSJ reports. Snapchat is said to be looking to raise up to $200M at a valuation of $3B-$4B. It has already scored $73M in venture funding, most recently hauling in $60M in June.
Founder Evan Spiegel has been open about his admiration of Tencent and its monetization strategy on a number of occasions. Tencent's own foray into messaging, WeChat, boasts 236M active users.
Tencent has ramped up its overseas investments as of late. It has invested over $2B to create a portfolio that includes start-ups such as Fab.com, Everyme, Ark, Sonalight, Loom, Watsi, Couple, and Waddle.
While a relationship could aid Snapchat in an effort to gain a foothold in Asia and monetize its user base, Tencent stands to benefit from expanding its reach in mobile as it battles Alibaba and Baidu.