WSJ: Tencent mulling Snapchat investment

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, 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.

Comments (1)
  • David Jackson
    , contributor
    Comments (1279) | Send Message
    Kara Swisher thinks the investment will happen this week:
    30 Oct 2013, 03:18 AM Reply Like
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