Investors value Snapchat app at $10 billion - WDAM - TV 7 - News, Weather and Sports

Investors value Snapchat app at $10 billion

Posted: Updated:
The 'Wall Street Journal' reported social media app Snapchat has been valued at $10 billion. (Source: CNN) The 'Wall Street Journal' reported social media app Snapchat has been valued at $10 billion. (Source: CNN)

(CNN) - Investors are betting there is a lot of money to be made in disappearing photos.

The Wall Street Journal reported social media app Snapchat has been valued at $10 billion.

The disappearing message app is not yet profitable, but the WSJ reported venture capital firm Kleiner Perkins has invested $20 million in the company. That followed an investment earlier this year from Russian firm DST Global, which valued Snapchat at $7 billion.

Snapchat was rumored to have turned down a $3 billion buyout offer from Facebook.

Investors are attracted to the app's popularity, particularly among young people. Its CEO said Snapchat's core audience is between 18 and 25 years old - a demographic advertisers love.

Copyright 2014 CNN. All rights reserved.