What do we do if Evan Spiegel wasn't just arrogant, but right? What if Snapchat turned down $3 billion in order to someday make much, much more? A new report out of Bloomberg says the app's valuation is in the stratosphere.
The Bloomberg scoop is sketchy on details:
Snapchat Inc., the company that makes a mobile application for disappearing photo messages, is in talks with investors including Alibaba Group Holding Ltd. (BABA) for a round of financing that may value the company at $10 billion, people with knowledge of the situation said.
The talks are ongoing and the terms of the funding may change, said one of the people, who asked not to be identified because the talks are private.
but makes total sense. As we've previously noted, $10 billion is now the minimum price tag startup founders seek in order to maintain their dignity.
The question is, will anyone ever pay $10 billion to buy out Snapchat? An investor valuation exists only in the minds and egos of the involved parties, and let's not forget that this is a company that pretty much still makes zero money. And yet, stranger things have happened.