An all-out acquisition of Snap by Tencent also remains unlikely. Image source: Getty Images. It also gives the firms technological know-how to bring back to a thriving Chinese market with more than million internet users and protectionist policies that keep most foreign competition out.
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Less than 24 hours after disappointing Wall Street yet again, Snap promoted a new vote of confidence from a significant backer: Tencent Holdings, the Chinese internet giant. In a regulatory filing on Wednesday, Snap, ppayers parent pllayers the disappearing messaging app Snapchat, disclosed that Tencent had increased its stake in the company to over 12 percent. The Chinese company bought shares on the open market, the filing added. The Tencent investment is meant to give Snap a boost of confidence as it looks to fend off threats from bigger rivals like Facebook. On Tuesday, Snap released its third-quarter resultswhich showed slowing user growth, sales that missed expectations and a bigger-than-expected loss.
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Chinese internet giant Tencent owns a 12 percent stake in Snapchat operator Snap Inc, company filings showed on Wednesday, the latest in a string of major investments in the United States by China’s new tech heavyweights. The details of the stake, revealed by Snapchat after badly received quarterly results, came as U. It helped the U. Snap’s largely privately owned structure, which reserves 95 percent of voting rights for its co-founders, made it likely Tencent was just accumulating a financial stake. Tencent is the largest social media and gaming company in China and owner of the popular mobile application WeChat. It had previously invested in Snap through an affiliate in , and has been referred as a «role model» by Snap’s co-founder and Chief Executive Evan Spiegel. Snap said in its quarterly report that Tencent had bought
Let’s examine some lesser-known facts about the Chinese tech giant.
Less than 24 hours after disappointing Wall Street yet again, Snap promoted a new vote of confidence from a significant backer: Tencent Holdings, the Chinese internet giant. In a regulatory filing on Wednesday, Snap, the parent of the disappearing messaging app Snapchat, disclosed that Tencent had increased its stake in the company to over 12 percent. The Chinese company bought shares on the open market, the filing added.
The Tencent investment is meant to give Snap a boost of confidence as it looks to fend off threats from bigger rivals like Facebook. On Tuesday, Snap released its third-quarter resultswhich showed slowing user growth, sales that missed expectations and a chinese players invest in snap loss. Shares in the media and messaging invets dropped as lnvest as 20 percent in after-hours playeds following the release of the financial report.
The earnings announcement has spurred analysts xnap investors to ponder whether Snap, whose initial public offering in March was celebrated on Wall Street, is in trouble. Though it remains a darling of younger users, many of its major functions — notably its Stories video feature — have been copied by competitors, in particular Facebook.
Before its market debut, Snap had been lauded as being hipper and more innovative than Facebook and other social media companies. Since going public, however, it has had to address slower-than-expected smap growth, rising costs and investor doubts about its strategy for dealing with.
Other problems that the company has grappled with include overestimating demand for its Spectacles camera-equipped sunglasses, a once-hot product whose sales cooled rapidly.
Spiegel said on the. That he spoke openly about his priorities marked a change for the Mr. Spiegel, who is normally tight-lipped about his strategy. Such an approach has frustrated investors who have sought a better sense of where the company was llayers. But now, Snap has the support of Tencent.
The Chinese company has had a history of taking stakes in chat apps, such as Snap, in order to learn more about how they work and how they perform from a business perspective. A Tencent spokesman said chlnese a company conference in Chengdu, China, that it viewed the Snap stake as a strategic investment. DealBook Business and Policy.
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Any effort to tap the Chinese ad market could help Snap get back in Wall Street’s good graces. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Stock Advisor launched in February of It plyers gives the firms technological know-how to bring back to a thriving Chinese market with more than million internet users and protectionist policies that keep most foreign competition. Chinese players invest in snap disclosed the Tencent stake in its third-quarter earnings report filed Wednesday morning with the Securities and Exchange Commission, but it was playfrs clear when exactly Tencent purchased those chimese on the open market. California is rewriting the rules of the internet. But we’ve invested in building out some engineering there, and obviously it’s really exciting for our business,» Spiegel said.
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