Tencent eyes messaging app Snapchat, already among the minority investor in the company

snapchatWhile Facebook’s USD 1 Bn bid and Google’s attempts to acquire the messaging app, Snapchat is making news all over, as per the recent reports, another company is trying out to acquire the company. Rumors have been started circulating that WeChat’s parent company, Tencent too wanted to acquire Snapchat or atleast be its investors.

The rumours comes out to be close to truth as reports cites that Tencent is already a minority investor in Snapchat and was among the undisclosed minority investors in the company in the USD 60 Mn funding round, which Snapchat had raised in June this year led by Institutional Venture Partners.

Though it was expected that Tencent would invest in Snapchat in its next round which would value Snapchat at USD 3.5 Bn, but it came as a surprise that it’s already among its investors.

Tencent’s share of investment is still undisclosed in the company.

Tencent’s this attempt to invest in Snapchat is similar to what it did for its expansion in South Korea, where it acquired a 14% stake in messaging app Kakao Talk.

This will not only be a beneficiary for Tencent but even for Snapchat, as this would help Snapchat to set up its base in country where internet companies like Facebook and Google had failed. Not only in the China, but also in other South and SouthEast Asian countries like India, Indonesia etc. where Tencent is already trying to push its own instant messaging app WeChat.

To contact author of this post, email pooja.sareen@wirefootindia.com

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