Snapchat, the three-year-old messaging app with disappearing photos, could become the world’s third-most valuable tech start-up according to Jefferson Graham reporting for USATODAY. Snapchat is reported to be in talks to raise as much as $500 million, which would value the company at $16 billion to $19 billion.

Graham spoke to Brian Solis to discuss why the company is garnering such a high valuation.

Why is Snapchat worth so much? Because it reaches the “elusive” market of teens and young adults, who don’t watch TV (on TV), or read magazines or newspapers, says Brian Solis, an analyst with the Altimeter Group.

“Brands and agencies are willing to pay dearly to reach this audience,” Solis says.

Recently Snapchat added a new feature, Discover, offering bit-size entertainment beyond the photos and videos for young viewers from the likes of CNN, People magazine, Yahoo News and National Geographic.

Brands paid “hundreds of thousands of dollars” to be part of the program, says Solis.

Snapchat in three years? “it will be owned by public investors and a major media brand,” Solis predicts.

Here’s a video featuring Brian along with active Snapchat users.

Read the full story at USATODAY.