The Internet portal and Snapchat have held talks that are expected to lead to an investment in the mobile-messaging startup’s next funding round, three people familiar with the matter said. The round hasn’t yet closed and is slated to value Snapchat at $10 billion. It wasn’t clear how much Yahoo planned to invest in Snapchat.
Yahoo has acquired mobile messaging application MessageMe, a Whatsapp-like service with $11.9 million in reported outside funding. The deal, we’re hearing from multiple sources, is a talent acquisition falling into the “single-digit” millions. [Update: We're hearing now that the deal may actually better than this. Word is the deal is actually in the double-digit millions, and has been structured to be favorable to investors and employees alike.] Yahoo is announcing the acquisition internally today, and the MessageMe team begins work Monday.
A nice venture capitol move with Snapchat, but an acqui-hire of MessageMe has to mean Messenger is being left to rot on the vine. Yahoo Directory is dead, Messenger on life support, I can only presume that Yahoo! Groups is frantically looking over its shoulder.