Snapchat, known for its mobile application that allows users to send messages with disappearing photos, is in talks to raise a new round of financing from Alibaba Group Holding Ltd. in a deal that could value the startup at about US$10 billion, the Wall Street Journal reported, citing sources familiar with the negotiations.
The talks may involve other investors and could fall apart before a deal is reached, the sources said.
An astronomic valuation for Snapchat, which has hardly any revenue and whose main asset is a new mobile app, would mark a milestone in an era of investor optimism, as financiers compete to buy shares of the hottest technology companies, according to the newspaper.
The talks also highlight the growing allure of US technology startups to the Chinese e-commerce giant, which is making a series of investments in new Silicon Valley companies as it prepares to launch an initial public offering later this year, the report said.
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