Snapchat, the popular photo sharing app, has been locked out from a $5 billion deal to acquire Facebook, according to people familiar with the matter.
The decision is expected to be announced on Tuesday, one of the people said.
The Wall Street Journal first reported the news.
The deal is being financed by Google and Facebook, as well as venture capital firms.
Snapchat is valued at $1.2 billion.
It’s unclear what Snapchat’s impact on the deal will be.
But the news will likely boost investor enthusiasm for the app, which had been on the decline for years.
The social media giant’s share price has plunged more than 30% this year.
Snapchat, which has more than 100 million users, has faced a steep decline in users over the past few years.
In December, Snapchat announced it had hired an outside law firm to investigate possible antitrust violations by Facebook and Google.
The news prompted Wall Street to downgrade the stock to a “hold” in anticipation of possible antitrust action.