China’s richest man Ma Huateng buys 12% of Snapchat
Snapchat parent Snap Inc. disclosed Wednesday that Chinese tech giant Tencent had taken a 12 percent stake, a sign of confidence in the social network that has delivered disappointing results since its share offering this year.
A securities filing showed Tencent Holdings had purchased some 146 million shares of Snap non-voting stock in open market purchases in November.
Those shares would be worth some $220 million at Snap’s current value, or 12 percent of the equity.
Brian Wieser at Pivotal Research said the Tencent investment should not impact Snap’s valuation even if it conveys some confidence in the US firm.