Snapchat is one of the most popular messaging servicess among the teens. It's been around for over three years now and even though it's yet to monetize its user base, things are going very well for it. There were even rumors Snapchat refused acquisition bids from Facebook and Google worth $3 to $4 billion.
It seems the Snapchat CEO was right to turn those offers, if real. The company is estimating its value at $10 billion as it prepares for another round of financing.
Apparently Yahoo is very close to investing $20 million into Snapchat. It has done such investments before and they turned into billions of profits later.