Saturday, March 14, 2015

Alibaba to invest in Snapchat

According to Bloomberg earlier this week, Alibaba Group Holding Ltd. plans to invest in Snapchat Inc. at a valuation of $15 billion.

Snapchat is part of a breed of startups with multibillion-dollar valuations, with investors lining up to offer financing. With the latest deal, Snapchat would be ranked behind only mobile car-booking application Uber Technologies Inc. and Chinese smartphone maker Xiaomi Corp., according to data compiled by researcher CB Insights. 

This move of Alibaba shows that it is expanding beyond its core business of e-commerce, adding other investments such as finance and entertainment content as part of a plan to serve 2 billion customers globally. To some market analysts, it also shows Alibaba's intentions to move into social networks

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