Here’s a message: Yahoo reportedly investing in Snapchat

Yahoo ought to be used to it by now, but the questions about its future continue, especially after it made some money from selling shares in recently-gone-public Alibaba. Not only that, investors and other bossy entities are pushing for some drastic moves.

What’s a Silicon Valley Internet giant to do?

Why, invest in a revenue-challenged startup, of course. The Wall Street Journal is reporting that of the billions Yahoo made from selling some of its stake in Alibaba, Yahoo is considering investing $20 million in Snapchat, the app that sends mobile messages that self-destruct after a few seconds. But revenue questions aside, Snapchat reportedly has a $10 billion valuation, and it’s in a hot space: mobile messaging. So the WSJ notes another gigantic company’s early investment in an unproven startup as an example of what could go right — Microsoft’s investment in Facebook.

However, as our own Pete Carey writes, Yahoo’s sales remain flat after its purchases of Tumblr (for $1.1 billion!), Flurry and other startups since CEO Marissa Mayer took the reins a couple of years ago. Sure, it takes time to see how such moves play out. But those pesky shareholders aren’t being very patient: Investment group Starboard Value is pushing for a Yahoo-AOL merger, and calling for Mayer to stop the shopping spree. And a Swiss investment advisory firm is calling for Yahoo to merge with Japan’s Softbank.

 

Photo from Associated Press archives

 

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  • lang lee

    yahoo stockholders need to fire mayer and put the company up for sale before she goes on another GARBAGE BUYING SPREE!!!

 
 
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