Tencent increases its stake in Snap as it eyes future news and gaming collaboration
Tencent has been accumulating shares in Snap, building enough to account for almost 12% of its basic shares, according to Snap’s latest filing.
Tencent has increased its stake in Snap
The Chinese internet giant now holds a more than $2bn stake in the app, according to the Financial times, after a recent increase in its share count.
Tencent has long been an investor in Snap, investing in the company before its IPO in March last year. Snap now counts both Tencent and Comcast as two major firms with significant stakes in its business.
According to the FT report, the investment from Tencent comes as it eyes future collaborations around gaming and news.
“It’s an innovative company with a huge user base in western markets and we saw an opportunity between the two [companies] with news feed and mobile game publishing,” said a Tencent spokesman.
Snap gave its latest results this week, posting revenue increases year over year but an overall loss $443m for the period.
It also announced that CPM rates had dropped, which may be a short term dip caused by its recent move to programmatic trading.