Transcript for Snapchat Valued at $10 Billion
-- -- Wednesday August 27 the markets in New -- -- open at today's big number ten billion dollars. -- -- -- -- for snapping some pictures sell fees that go away in an instant. And that's how much the -- chat is valued at these days the disappearing photo messaging app -- taking off hello everyone I'm Michelle Franzen in New York. And here with the details Yahoo! finance is just MacKey who just -- using snapped. -- try to take that I am not sure exactly I think some people are argues this that Karen -- Yeah -- and fear that aren't disappear all of that much I guess it's not quite as an ominous as it first seems but I hate that company got over that little hurdle and that was revealed earlier this year netstat ten billion dollar company -- raise money. Kleiner Perkins the venerable -- seasoned Silicon Valley have decided that snapped out as if they've tapped them and given them Kleiner Perkins in for -- And that makes them worth ten billion dollars at stamped at a company with no real business model just anonymous apps for the kids to send each other it's really just that -- that the spotlight. Does this halo on the company -- there that ten billion dollars just like. It's close they also have made a cute logo and again -- they've kind of -- the zeit Geist at least briefly. -- you know and it it kind of is but there's here's the thing about this that would leave these Silicon Valley and and my roots are very lived in the values assigned to one. We've got here briefly recently relatively but they they really are kind of playing kingmaker syrup disorganized and on frisky again and -- creating all there's entrepreneurial opportunities. Ten billion out of nothing it's raising concerns that this is going to be another bubble but really if Kleiner Perkins these these old money guys are gonna fund on these young upstart company as a double whatever valuation they want does not like the Internet bubble where people -- So we're seeing a lot of this entrepreneurial kind of energy coming on the valley. It's leading to -- -- Venus like snap jab but also companies like Hoover that are revolutionizing transportation and so it's kind of an exciting time it's not fun. Even if it does seem a little on in certain instances. Out as a little bit more going on -- snapped out of out of third most popular app among the millennial so they are also putting a spotlight on -- there after FaceBook and program. What is going on with some of the big investors it's -- man. Well I think it'd what the looking at art things like the comparable to what. Apple which it was bought by FaceBook. For nineteen some billion dollars last march and they're looking at the difficulty tapping and that millennial audience and and getting that attention that was eyeballs. Now the problem here is that the company is surrounds and the wall what that anonymity thing because they're selling the idea that they don't know much about their customers. And that you're able gonna go there these these. Post disappear instantaneously that would suggest they don't know much about their customers -- advertise effectively -- them so it's not clear how this is gonna become a revenue model. That has not been much of a concern known cases like what's -- with the FaceBook acquisition so they may be dressing up snapped out. To try to get it acquired somewhere down the line before right now you don't really need revenues -- are funded again by venture money. It's not so important it did these guys to stay alive as long as they need to and find a way that to make money later and Jeff what does that tell you about all this venture money that. There were talking about in the areas of billions of dollars of this game thrown around. We're talking billions of dollars and yet again the major is that -- the bubble and to complain about it in the days. Be all upset about it but you know this is how FaceBook got may desire -- got -- decide who -- on the Google has appeared -- we've had to cataclysmic financial crash is the last fifteen years. And yet Silicon Valley and the VC community continue to churn out. And reinvent its economy which has just been a boon for us really -- and it's it's made America can't agree not -- -- -- this is what capitalism looks like you want the risk takers. To be swing and big in the risk takers should be young kids like the -- snapped up. And and money like Kleiner Perkins which has billions of throw at this that they want to put twenty million in the snapped -- -- -- ten billion dollars if the company blows up in a bad way. -- who cares and that blubber to go to wait -- -- -- FaceBook you know FaceBook seemed pretty creepy at first -- And it turns out they're making lots and lots of money in a real tangible way whatever -- -- of the valuation. A depth of what we let you go out what else are -- watching on the markets today. Probably got a record highs today S&P 2000 index for grownups are mounting 2000 for the first time this week. It's exciting stop drop the balloons and confetti and and let's get excited truthfully I'll be honest if you tell us all. That we've we've got an the week before Labor Day -- these -- the dog days they. They I think Wall Street cannot hires people right around Memorial Day they bring a man and they train I'm just for this week. And they say you know what -- you get a job offers -- don't screw things up before Labor Day -- -- at the Hamptons and so that's only now a lot of people. Back again yeah and actually the grownups sort of come back -- -- frankly don't really get started the segment. I'll give you some time this matchup today Jeff mash -- finance thanks for joining us. Yeah of course can keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in the --
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