AP/Jae C. Hong
Snapchat CEO Evan Spiegel.
Snapchat is close to finalizing a $20 million fundraising round led by Kleiner Perkins and Yahoo has been involved in the talks, according to The Journal's sources.
Yahoo just made more than $5 million from selling part of its stake in Alibaba in the recent IPO, and apparently wants to use some of that money to invest in the fast-growing startup.
The Journal notes that Yahoo is one of many potential investors that Snapchat has had conversations with, including tow former investors, Institutional Venture Partners and DST Global.
It's unclear how much Yahoo plans to invest in Snapchat. The app currently has more than 100 million users; it was valued at $3 billion last year. This new round would make Snapchat one of the most valuable startups in the world.