Yahoo sells a portion of stake of Alibaba Group and tends to invest Snapchat, a popular photo and messages sharing app among young people. As we know, Yahoo’s investment in Alibaba undoubtedly makes profit simply in terms of investment return. And now Yahoo targets to a potential company. But would the investment in Snapchat also be a successful try?
Snapchat allows users to set the time that they want the system to automatically delete photos they upload and does not allow other users to take screenshot. This function protects users’ privacy. And that is the “Point Of Difference” between Snapchat and its competitor Instagram. However, users worry about that other users could still take photos of what they upload by using other phones and camera. Using Snapchat means to take risk of privacy disclosure. Establishing trust with users is not a easy task for Snapchat. Thus considering this reason, Snapchat may lose a portion of users. Besides, Snapchat mainly targets on young people while Instagram targets on broader users. Snapchat may not have large market as Instagram has. Therefore, Yahoo needs to consider carefully before making decision about investment to Snapchat.
Resource and Picture from: http://dealbook.nytimes.com/2014/10/03/yahoo-in-talks-to-invest-in-snapchat/