Report: Snapchat Raising $200 Million From Alibaba at $15 Billion ValuationThe Chinese ecommerce giant is reportedly eyeing expansion into overseas markets as well as social networking.
ByGeoff Weiss•
Opinions expressed by Entrepreneur contributors are their own.
Chinese ecommerce giant Alibaba is poised to tender a $200 million investment in Snapchat that would value the ephemeral photo messaging service at $15 billion.
While Snapchat was alsosaid to be eyeinga $500 million funding round at a $19 billion valuation last month,Bloombergreportsthat Alibaba's investment would be outside of that round.
Though investors are clamoring for a piece of Snapchat, the company's CEO, Evan Spiegel, has refused to comment on fundraising initiatives. "We are famous for not talking about the future," he quipped at a tech summit in Santa Monica, Calif., earlier this week.
Related:Why Snapchat Is Worth $19 Billion (Or More)
The Alibaba deal, were it to go through, would place Snapchat just behind Chinese smartphone maker Xiaomi and car-booking platform Uber as the third highest-valued startup in the world. Valuations for Xiaomi and Uber have been pegged at $45 billion and $40 billion, respectively.
And this is not the first time that Alibaba has reportedly considered an investment in Snapchat. Last summer, before its record-shattering IPO, Alibaba wassaid to beconsidering an investment in Snapchat that would value the company at $10 billion. Though Alibaba ultimately passed at the time, Kleiner Perkins Caufield & Byersinvested$20 million in Snapchat for a 1 percent stake at a $10 billion valuation.
Renewed interest by Alibaba reveals a desire to expand into overseas markets and into social networking, analysts toldBloomberg.Last March, Alibabainvested$215 million in Tango, a free messaging platform with social networking features.
Related:Martha Stewart and Jack Ma Powwow About Global Domination
