The Chinese investment giant behind WeChat,Ai??Tencent, hasAi??purchased a 10% stake in Snap, the parent company of the popular social network Snapchat, by purchasing 145.8 million nonvoting shares over the past quarter.
In a 10-QAi??SEC filing for its quarterly results that were announced yesterday, Snap disclosed thatAi??Tencent has acquired anotherAi??145,778,246 shares of Class A common stock in open-market trades, which works out to roughly 12 percent of the company.
That works out to a stake of just over 10%.
Snap said in its filing that Tencent, which developed the hugely popular messaging platform WeChat, had informed the American firm that it “looks forward to sharing ideas.
” Tencent is one of China’s biggest tech success stories. China Literature, an e-book company in which Tencent owns a majority stake, soared as much as 100% in its Hong Kong IPO on Wednesday.
This new investment isn’t the first timeAi??that Tecent and Snap have crossed roads.
Back in late 2012 and 2013, Tencent invested in Snapchat through a series of private rounds of funding. An additional deal in which CEO Evan Spiegel and cofounder Bobby Murphy apparently asked for $40 million in secondary shares failed to materialize in late 2013.
During Snapchat’s early days, Speigel referred to Tecent as a “role model.” WeChat, which is hugely popular in China, relies heavily on scannable QR codesAi??that work like the yellow profile “Snapcodes” used by Snapchat.