Snapchat & Yahoo- A match made in heaven?-lost ya horse

Once it was hard to believe that someday, Yahoo- the American internet corporation, could be

interested in investing on revenue-less, relatively new kid-on-the-block Snapchat that offers

a seemingly illogical product and i.e. ‘disappearing’ images. If we see it from the other point

of view, then it’s also true. One can always question the move from the Part of Snapchat- a

cool, young, hip messaging app, which won over the hearts of millions of teenagers around

the world within 3 years of its existence, and which declined offers from internet giant like

Google and social networking Goliath but willing to collaborate with Yahoo- almost a Grandpa

now in Internet that has been in constant state of declining for past some years which even its

charismatic CEO Marissa Mayer couldn’t quite help to resist! Though no parties have been

spoken yet about the exact figure of the monetary deal; it’s is assumed that Snapchat is being

valued at $10 billion, and the rumor is that Yahoo will shell out some of the $7 billion hand-out

it made in its previous Alibaba IPO for the Snapchat deal.

But the question remains that how both the parties- Snapchat with its ephemeral images and

exciting on-going additions and Yahoo with its dwindling market can be benefitted from this

deal in future?
Lost Ya HorseLost Ya Horse

Does Snapchat hold all the cards in this much-hyped collaboration with Yahoo?

Snapchat is inarguably the toast of the season. In the heart of America, Snapchat has been able

to make most of its user-base, by capturing the attention and time of millions of Snapchatters

who belong to the dream age group of any marketer; 13-19. So there is no denying the fact that

Yahoo didn’t have to think hard before making a smart move of putting its hard-earned cash

on Snapchat. Also it helps tremendously that Snapchat is no way linked with Facebook and

it’s an original product thoroughly. There is a generally an anti-Facebook vibe in the wind in

USA which Snapchat is exploiting tremendously. With the launch of ‘ Snapchat stories’ and the

hordes of advertisers that are showing interest in putting up ads in Snapchat- it’s not a rocket

science to understand that why Yahoo wants to associate itself with Snapchat- a mobile internet

service among all the other hot social networking sites.

But Snapchat also has its own weaknesses which only Yahoo can make up

The core problem that is eating up Snapchat right now is that – it has not grown beyond countries

like America, Australia, UK , Sweden etc. Especially in Asia, Snapchat is lagging way behind its

competitors like WhatsApp, Viber, Facebook Messenger to name a few. Tying up with Yahoo

can make for a strong brand statement in countries like Japan, India, Taiwan and the rest.

Also Yahoo is a strong global contender when it comes to news contents that are original and

licensed. With Yahoo’s terrific bench of journalists, diversified digital magazines , news app and

tie-up with SONY Television, no wonder Snapchat which is on the verge of launching Snapchat

Discovery- it’s news segment; will be lapping up to get Yahoo on its board of investors.

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