Chinese internet giant Tencent Holdings Ltd has bought a 12% stake in Snapchat developer Snap Inc, becoming the largest shareholder in the company, the US tech company announced Wednesday. The announcement came less than a day after Snap Inc posted weak results that sent its share price plunging. Tencent, an early pre-IPO backer of Snap, acquired roughly 146 million of its shares in the public market, Snap said in a filing. The move adds to an investment Tencent made in Snap in 2013 during a fundraising round ahead of the company’s initial public offering. It is not clear exactly what Tencent’s total position in Snap currently is. Tencent didn’t disclose the price it paid for the shares, but as recently as October 6 executives were discussing raising its stake through share purchases on the open market, a person familiar with the matter told The Wall Street Journal. That suggests Tencent likely spent at least $2 billion acquiring the stake, based on Snap’s minimum share price in this period, according to The Wall Street Journal.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved