Tencent has amassed a $2 billion stake in Snap


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.


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Grace Guo

Grace has been working for Nokia Beijing office for 5 years, so she has profound knowledge of phone hardware. Her job at Driversdown is smartphone hardware test and writing review articles of new released phones. In order to get more practical data, she might have a new smartphone very week or month. Contact Grace via grace@driversdown.com