There are times when playing with your cards close to your chest works in your favor. Earlier this year, we brought you word on how Snapchat’s CEO turned down Facebook’s offer to purchase the company for $3 billion, which is certainly a whole lot of money at that time (and even now). Those who said that the company should have been sold at that price will probably be interested to know that the Snapchat CEO did the right thing then, as Snapchat is now valuated at a whopping $10 billion – which is more than three times of what Facebook offered just eight months ago.
The main reason behind this valuation spike? Well, there were reports going around that venture capital firm Kleiner Perkins Caufield & Byers has decided to invest another $20 million in Snapchat, in addition to another strategic investor having given their nod of approval to throw in more money – although that particular amount has not been revealed.
A Snapchat spokeswoman, however, had this to say about the rumors that were flying around, “The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time.” Do you think that Snapchat is worth $10 billion at the moment, and how high will it go?