Yahoo is allegedly aiming to invest in Snapchat, marking its first play in the business world in a long time.
Snapchat is a photo messaging app that allows users to send photos and videos of themselves to other users. The app automatically deletes them after a span of time, usually in one to ten seconds. Snapchat gained the attention of Yahoo in early May when they reported some 700 million photos and videos were being shared among users every day.
According to sources from the Wall Street Journal, the initial value of Snapchat was estimated at $10 billion, however, no specifics have been released on how much Yahoo will be investing, but reports suggest that the figure may be around $20 million.
Since the company was founded, Snapchat has raised nearly $160 million, largely through funding campaigns. It is worth noting that Snapchat is currently self-funded with no other source of revenue.
However, this comes at a time in which Snapchat is seeking to not only diversify its range of messaging services, but is additionally looking to attract advertisers, a point which makes it obvious as to why Yahoo would be interested in Snapchat.
Though Snapchat is continuing to grow as a company, one must wonder if purchasing a company like Snapchat will have negative effects on Yahoo and its image, especially considering recent child porn allegations surfacing the web.
In a recent report by the DailyDot, (an online news source, Snapchat faces a huge epidemic of child pornography by users who lie about their age and post nude photos on accounts, one of which is titled, “Boy Confessions”)
Eric Goldman, law professor at Santa Clara University commented in an interview with DailyDot that, “The real story here is that every user who touches a Snapchat Story that contains child pornography is exposed to potentially life-altering legal risks. We simply don’t tolerate child pornography in our society; so anyone who uploads child pornography can go to jail for many years (often decades); and even someone who downloads the child pornography to view it faces similar legal risks.”
When asked by the DailyDot to comment on the rising concern over child pornography Snapchat refused to comment.
Yahoo continues to diversify itself
Continuing Yahoo’s rapid growth in the past month, it has also been announced that MessageMe, an online messaging service, has also been purchased.
While the exact details are not known, it is believed that Yahoo intends to use MessageMe to pursue development of a form of instant messaging for Yahoo.
In a statement to the press, Yahoo remarked that, “The team behind MessageMe has joined Yahoo. They built a mobile messenger application focused on personalization and creativity, and we’re excited to welcome the eight MessageMe employees to the Yahoo team.”
In a time which is defined by constant change, hopefully Yahoo can continue to invest in the right ventures and not bring itself down by investing in an application which may lead to a slew of legal ramifications.