Snapchat Inc. is currently in discussions to expand the services of its namesake app to include videos, news and advertisements, the Wall Street Journal reported.
The Snapchat app, which allows users to send messages to users that will be automatically deleted within seconds, may be adding a little extra to the experience in the near future with a service named Snapchat Discovery.
Snapchat is talking with media companies and advertisers about Snapchat Discovery, which is rumored to be released in November this year.
Snapchat Discovery will give access to users to content such as publications and video clips, along with advertisements. Users can access the content by holding down their finger on their device's screen, similarly to how users access pictures and messages on Snapchat.
At least a dozen companies in the media industry have expressed their interest in the Snapchat Discovery service and are in discussions with the company on providing content.
Snapchat notoriously turned down a $3 billion takeover offer from Facebook in November of last year, as CEO Evan Spiegel said that he was not interested in selling the company. That also was not the first time that Facebook offered to purchase Snapchat, with a previous offer of $1 billion likewise turned down.
Google also reportedly made an offer of $4 billion to purchase Snapchat. The offer was also rejected.
However, Snapchat was reported to be in discussions with a group of investors led by Alibaba Group Holding Ltd. for an investment that will value the company at around $10 billion. Alibaba is planning the investment in Snapchat to increase its presence in the United States, where the company is planning to soon launch its IPO, and also to gain leverage against rival Tencent, which owns the WeChat messaging app.
If the investment by Alibaba pushes through, Snapchat will become the latest technology start-up to acquire an 11-figure investment despite not having any profit-generating activities.
Snapchat's rumored efforts, however, show that the company is finally looking to create revenue to turn the app into a sustainable business.
Many Internet companies have already previously reached this stage of growth, such as when Facebook began to publish advertisements, Twitter released Promoted Tweets and Pinterest began featuring Promoted Pins.
Some advertisers have already started using Snapchat through Snapchat Stories, which is a service that connects several messages together and then broadcasts them to a big group of users. However, similarly how Facebook's brand pages work, an advertising service through Snapchat Discovery will help advertising companies reach their audience, even if the users are not actively seeking for the products in the advertisements.