Snapchat- the investment offer from Alibaba and rivalry with Facebook

Snapchat- the revolutionary photo messaging app

Well, since its launching under Evan Spiegel, the app has been in headlines for many reasons. It includes

turning down the $3 billion offer from Facebook, or the $4 billion offer from Google. Apart from these, the

app had also included some of the innovative ideas and features like the Snapchat pictures getting deleted

after a definite period of time, drawing on the Snapchat pictures before sending them to friends, sending of

500 million messages per day. So, the app was on headlines and received considerable amount of publicity.

However, due to excessive competition in the market of photo messaging apps, Snapchat is slowly losing its

popularity and importance among its users.

Recent competition in the market from other related apps and revenue collection

Due to competition from other photo messaging apps like Instagram, Slingshot have led to this app getting

somewhat cornered in the market. Apart from these, many other apps like Airbnb which is a house sharing

app and Uber, a car booking app, have reached the $10 billion value in market raising $500 million and $1.2

billion from the investors respectively. So, according to Matt Turlip, a senior analyst in PrivCo, the $10

billion mark is very remarkable and it shows that the company is earning good revenues. He also said that in

comparison to them, so far, Snapchat is just an app and it needs to show that it can also earn revenues.

A Chinese messaging app, WeChat have recently made money by using mobile payments. So, Snapchat can

also go for that and turn out to be a good platform for the advertisers. Turlip said that Snapchat should make

money from the loyal users. At least they should be able to earn some revenues in return of the venture capital

money they are taking.

Rivalry with Facebook and investment offering from Alibaba

In recent times, Facebook has planned to take over all the messaging apps in market and be the only leader in

the market of messaging apps. They have their photo messaging app, Instagram, launched a Snap chat similar

app, Slingshot and also another app to compete Snap chat, Bolt.

Apart from these, Snap chat CEO Evan Spiegel said that Mark Zuckerbrg, creator of Facebook has warned

him after rejection of the $3 billion offer and has threatened to launch rival service against Snap chat. He

basically wanted to crush the company. Anyways, Slingshot is the second attempt to kill Snap chat.

Apart from those, Snap chat has some good news that Alibaba, a Chinese internet giant is ready to invest

money on them. According to experts, the investment is going to be the largest tech initial public offering so

far. It is a good sign for Alibaba as well. The company has made some smaller investments in US in the past

already, but it will be its most high profile investments up to date. Many analysts think that the company will

be valued at $240 billion, more valuable than JP Morgan Chase, the most valuable bank in US.

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