New York Times posted an article on Saturday, talking about Yahoos thoughts investing in Snapchat. Snapchat is an App that allows its users to share photos that self destruct. This deal has not yet closed, Yahoo still has to decide if they want to be an investor of the company. They did not decide yet, because they do not know if it would be better for the company, if they invest or not. If Yahoo decides to invest they will join other famous investors.An advantage for Yahoo would be that through the investment in Snapchat, the company would become more relevant to younger consumers. Adding to that Snapchat has much publicity. Last fall the business rejected a 3 billion dollar offer from Facebook.
Although Snapchat is very popular shareholders think that an investment is just another spending spree, because the App has yet to develop any revenue.
Despite the undecided investment question for Yahoo, both companies want to increase their content offerings, and therefore have the goals for the future.
This article clearly summarizes what we have learned in the last few weeks/in the last week in Business Management. Investing in Snapchat could be a great chance for Yahoo, but this could also be a risk, because Yahoo already had made the mistake to invest in a wrong company. We discussed organizational planning tools, which would be used by Yahoo in a situation like this. A decision tree could be used to decide whether to invest or not and which profits or losses the firm makes through that. Therefore they could easily decide if they want to invest.
