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 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.