Not to be left out of the exploding messaging phenomenon, Yahoo has apparently decided to invest millions of dolloars in Snapchat.
According to the WSJ, the company may invest about $20m in Snapchat’s next funding round after cashing in from its stake in e-commerce giant Alibaba, which dispelled earlier rumors of investing in Snapchat in late summer.
Snapchat has been the subject of many more investments and acquisitions this past year, including Facebook’s $3 billion offer last year, which the messaging company subsequently rejected for being too low.
Yahoo will be killing the MessageMe application
That’s not the only thing on Yahoo’s list in the messaging space, as it has also acquired MessageMe for a rumored $30-40 million.
Interestingly, MessageMe, which had 1 million users was also an acquisition target for Snapchat. With the acquisition, Yahoo will reportedly kill the application completely and will rededicate the MessageMe team to other mobile communications projects. This will also reduce the competition slightly, though the space is still plenty large and dynamic enough for a great many apps to coexist.