Twitter CEO Dick Costolo - Snapchat's $10bn valuation 'not absurd'
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.
Snapchat at $10b not absurd. Crazy growth, clear monetization path, & one of the best social product thinkers out there. Long (figuratively)
— dick costolo (@dickc) August 27, 2014
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.