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Tencent Takes Stake In Snapchat Company

November 10, 2017 by   | Category: Mobile

Snapchat got a vote of confidence from a new investor.

Chinese tech behemoth, Tencent, has taken a 12 percent stake in Snap, the company that gave us disappearing messages first, reported the Financial Times. Tencent sits among China’s three biggest tech companies along with Baidu and Alibaba, collectively known as BAT.

The news, revealed in Snap’s quarterly filing with the US Securities and Exchange Commission on Wednesday, comes after the company posted disappointing results of its growth this quarter.

It’s not Tencent’s first investment in a US company, having bought a five percent stake in Tesla in March. Tencent, the creator of popular Chinese mobile game, Honour of Kings, also owns Riot Games, the makers of League of Legends.

It’s no secret that Tencent has been making efforts to expand to the US. Also the owner of Chinese messaging platform, WeChat, Tencent brought its digital payment service, WeChat Pay, to the country earlier this year.

In the filing, Snap said it has “long been inspired by the creativity and entrepreneurial spirit of Tencent.”

Tencent president Martin Lau said the company “looks forward to sharing ideas and experiences.” This could come in the form of a collaboration between both companies on mobile games and news feed, according to a statement obtained by Reuters.

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