Tencent buys 145.8-million shares of Snap’s non-voting Class A common stock
Bengaluru— China’s Tencent now holds a 12% stake in Snapchat operator, Snap said on Wednesday, turning over a 20% slide in the US company’s share price after badly received third-quarter results. Snap’s announcement of the stake taken by Tencent, one of China’s biggest tech and investment firms and among the world’s biggest online games makers, came in a regulatory filing and follow reports dating back to 2012 that the Chinese company had invested in Snap. Snap shares had slumped nearly 20% earlier after disappointing Wall Street with much slower than expected advertising revenue and user growth on Tuesday. They recovered to trade down just 2% at $14.80 in pre-market trading from a close of $15.12 on Tuesday. Media reported in late 2012 and in 2013 that Tencent had bought shares in Snapchat through a series of private rounds, while an additional deal failed to materialise in 2014. Snap said in its quarterly report on Wednesday that Tencent had bought 145.8-million shares of its non-...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.