Yahoo is close to invest the first portion of funds in Snapchat Inc. At the first stage of cooperation, Yahoo plans to provide $10 billion of investments on the web service. Venture capital firm Kleiner Perkins Caufield & Byers will also invest as part of the first round of the Snapchat funding. Yahoo separately also agreed to buy mobile-chat platform MessageMe for less than $12 million.
It is interesting to note that the US government threatened to fine Yahoo for its rejection to provide user data for the National Security Agency. In 2007, its division of radio and electronic intelligence that is also a part of the Defense Department demanded Yahoo to provide access to the personal data of its users.