Tencent increases its stake in Snap as it eyes future news and gaming collaboration

Tencent has increased its stake in Snap

Tencent has been accumulating shares in Snap, building enough to account for almost 12% of its basic shares, according to Snap’s latest filing.

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.

Charlotte McEleny

Charlotte McEleny is The Drum's Asia Editor, charged with finding all the interesting industry news and insights from the Asia Pacific region. During her year in Asia, she's covered topics as wide ranging as industry overwork to artificial intelligence, and interviewed top CMOs such as Alibaba's Chris Tung, and world famous creatives such as Rankin.

Based in Singapore, she travels the region regularly, attending and presenting at many top events, such as Spikes, Ad Week Asia and Innovfest.

Prior to her role as Asia Editor, she spent 10 years working across the London marketing trade magazines, even picking up an award for Best Digital Team at the PPA Digital Awards during her spell as digital editor at Marketing.

All by Charlotte