Yahoo plans to invest a part of the proceeds from the Alibaba stake sale in mobile app Snapchat, which lets users send messages that disappear after a few seconds, reports the Wall Street Journal.
Yahoo and Snapchat held talks that are expected to lead to an investment in the mobile-messaging start-up's next funding round, the Journal said, citing three people familiar with the matter.
The round values Snapchat at about $10 billion and it was not clear how much Yahoo plans to invest in the hugely popular application, the Journal said.
Yahoo and Snapchat were not immediately available to comment.
Institutional Venture Partners and DST Global, two previous Snapchat investors, also plan to invest in the company, the paper reported, citing two people familiar with the matter.
Yahoo's shares were up 1.4% at $41.07 in late trading on Friday.
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