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Twitter CEO Dick Costolo - Snapchat's $10bn valuation 'not absurd'

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By John McCarthy, Opinion Editor

August 27, 2014 | 3 min read

Twitter chief executive Dick Costolo has defended self-destruct messenger app SnapChat’s $10bn valuation saying that it had fantastic monetisation potential.

Dick Costolo CEO of Twitter

Skeptics doubted the app's value of $10bn however, according to Reuters, Snapchat last year declined a $3bn bid from Facebook, and its numbers have since swelled.

Costolo instead defended the app which sends image-expiring messages, stating that it can live up to the valuation.

This comes after a GlobalWebIndex report found that the app’s user base grew by 60 per cent in the final three months of 2013 - mainly among teens.

The Twitter chief claimed that the valuation was not "absurd", adding that brands will be able to engage with its growing user base.

Costolo also described Snapchat’s chief executive Evan Spiegel as “one of the best social thinkers out there”.

The image-messaging service is currently considering adding in-app purchases and is negotiating with brands to expand its ad capabilities, building upon previous promoted campaigns with Evian and Calvin Klein.

On Tuesday Snapchat was valued at $10bn by firm Kleiner Perkins Caulfield & Byer, setting it on par with other digital businesses such as Uber and AirBnB, while Twitter is worth an estimated $30bn.

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