Yahoo to invest in Snapchat

Los Angeles - The internet portal Yahoo is planning to invest into the photo messaging application Snapchat, the Wall Street Journal reported on Friday citing people familiar with the matter.

Yahoo would use some of the proceeds it made by selling part of its stake in the Chinese online market place Alibaba to invest in the fast-growing start-up, the report said.

It is not clear how much money the internet giant would put up.

The venture capital firm Kleiner, Perkins, Caufield and Byers could invest up to $20m into Snapchat, according to the report.

Snapchat, which held talks with numerous potential investors, could be valued at $10bn at the end of the funding round, according to the report.

The mobile photo sensation Snapchat, which rose to prominence with a platform in which texts and photos disappeared seconds after they were viewed, is especially popular with younger users.

Yahoo made billions of dollars in profit with the Alibaba IPO and is looking to make acquisitions and strategic investments.