By Jonathan Davies

Yahoo is set to invest millions of dollars in the image sharing app, Snapchat, which could value it at $10bn.

Yahoo and Snapchat have declined to comment, but a report by the Wall Street Journal suggests Yahoo will invest $20m.

It is understood Yahoo will use funds secured by cashing in on its stake in Chinese internet giant, Alibaba. Yahoo co-founder, Jerry Yang, bought a 40% stake in Alibaba in 2005 for $1bn and is thought to have earned more than $9bn.

Under the stewardship of chief executive Marissa Mayer, Yahoo has gone in a different direction, moving away from its search focus. Instead, it has completed a number of acquisitions to position itself as more of a content provider.

Yahoo bought blogging platform Tumblr for $1bn last year, and last week bought mobile-chat service MessageMe with the intention of moving its team of eight onto Yahoo projects.

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