Yahoo plans to invest in Snapchat

Snapchat still doesn’t make any actual revenue off it 100 million active users, but that hasn’t stopped other companies from valuing the messaging app at several billion dollars. Now it looks like Snapchat could be headed to a valuation of $10 billion with a little help from Yahoo, according to a new report from The Wall Street Journal.

Yahoo Inc. plans to reinvest a small portion of the cash it made from an early bet on Alibaba Group Holding Ltd. in another fast-growing startup: Snapchat Inc. The Internet portal has committed to an investment in Snapchat at a $10 billion valuation, people familiar with the matter said. One of the people said Yahoo is investing about $20 million. Over the past few months, the mobile-messaging startup has been working to secure capital from a mix of venture-capital firms, money managers and companies.