WSJ: Kleiner Perkins investing in Snapchat at ~$10B valuation


The WSJ reports leading VC firm Kleiner Perkins has committed to invest in Snapchat at nearly a $10B valuation. Kleiner reportedly "committed to invest up to $20 million in May," and at least one "strategic investor" is also said to be taking part in the funding round.

Alibaba was previously reported to be eying an investment in Snapchat at a similar valuation, but talks are believed to have ended without a deal. Facebook was famously rumored to have made a $3B+ offer for the ephemeral messaging service before turning its sights on WhatsApp.

The WSJ also reports Snapchat now has 100M+ monthly active users (MAUs). That still leaves it behind Instagram's 200M+, Twitter's 271M (at the end of Q2), WeChat's 438M (also at the end of Q2), and WhatsApp's 600M+. Snapchat reportedly plans to monetize its users through an ad service later this year.

Naver's (OTC:NHNCF) Line unit, looking to go public in NYC and Tokyo at a ~$10B valuation, must be pleased to see the report. Line is closing in on 500M registered users (different from MAUs) for its mobile messaging service.

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Comments (13)
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    100 million MAU, that's a lot.
    26 Aug 2014, 06:41 PM Reply Like
  • Equitable Research
    , contributor
    Comments (2200) | Send Message
     
    Remember when everybody called this kid crazy for turning down a few billion from FB?
    26 Aug 2014, 07:01 PM Reply Like
  • th3decider
    , contributor
    Comments (478) | Send Message
     
    Note that no one is buying snapchat for 10b. They just conned some investors into giving them 20m for what appears to be around 2% of the company, working out to a hypothetical 10b valuation. That 10b number is not the actual value of any buy out they are getting.
    27 Aug 2014, 09:46 AM Reply Like
  • Equitable Research
    , contributor
    Comments (2200) | Send Message
     
    That is true. But... I bet the value goes much higher than $10B in the medium term. Public would eat up a Snapchat IPO distribution and have to figure that is the end game here.
    27 Aug 2014, 11:14 AM Reply Like
  • James Sands
    , contributor
    Comments (2601) | Send Message
     
    They don't have any monetization yet and are 500 million behind WhatsApp in users; so far it would appear that Facebook went with the a company that will have a better near-term opportunity based on scale.

     

    If we learn anything from social media, it is that scale of users seems to be paramount as Facebook dominates mobile second only to Google. Twitter is sort of an anomaly.

     

    Additionally, it would be nice to know the growth rate for Snapchat users.

     

    Similar to ad-tech in general, I don't see many of these companies being winners long-term. But a few may survive and others will continue to get acquired.
    27 Aug 2014, 11:21 AM Reply Like
  • littup
    , contributor
    Comments (506) | Send Message
     
    0.2% of the company, not 2% of the company.
    9 Nov 2014, 04:13 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11094) | Send Message
     
    Zuck should buy them out.
    26 Aug 2014, 07:48 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11094) | Send Message
     
    Hyatt Hotels is now worth less than Snapchat according to the market.

     

    Think about that for a moment...
    27 Aug 2014, 04:22 PM Reply Like
  • th3decider
    , contributor
    Comments (478) | Send Message
     
    Does everyone who uses snapchat realize that with the press of two buttons on my S4 I can take a screenshot and pretty much nullify the whole purpose and existence of snapchat?
    27 Aug 2014, 09:40 AM Reply Like
  • jeezuz30
    , contributor
    Comments (615) | Send Message
     
    "Snapchat reportedly plans to monetize its users through an ad service later this year"

     

    Very innovative
    27 Aug 2014, 09:51 AM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    The heck is snapchat?
    27 Aug 2014, 11:50 AM Reply Like
  • th3decider
    , contributor
    Comments (478) | Send Message
     
    Its an app where nearly the entire user base is teens who are sexting. Its a messaging program where you can send pics to someone and then the message/pic disappears a number of seconds later, supposedly giving you the ability to text incriminating or embarrassing stuff without fear it will be around forever or get posted to the internet.

     

    Unfortunately no one bothered to realize that most phones have built-in features now that allow you to take screen shots, nullifying the entire purpose of this app.
    27 Aug 2014, 12:02 PM Reply Like
  • Mo Money 2011
    , contributor
    Comments (78) | Send Message
     
    U guys don't get that Snapchat has moved well beyond its original teen usage to broadcasting of live video feeds for events, celebrities, etc. they'll be able to monetize that better. but I hate the app personally. very geared towards the yung uns
    10 Jun, 05:10 PM Reply Like
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