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Tencent acquired another 12 percent stake in Snap

Tencent Holdings Limited acquired another 12% stake in Snap Inc. this month. The owner of WeChat messaging platform as an investor in the company owner Snapchat said it has acquired 145,778,246 other shares of Class A common stock in open market trading which is equivalent to 12 percent of the company.

Tinuku Tencent acquired another 12 percent stake in Snap

"Tencent and Snap are under no obligation to disclose changes in ownership of Class A shares," Snap said.

Both companies have long collaborated with each other. Tencent takes part in at least US$60 million of Series B funding in 2013 reportedly also interested in acquiring Snapchat as part of a wider global ambition and specifically expanding more into the U.S. market.

Snap shares fell 7 percent in pre-market trading today where strategic and significant investors are taking advantage of opportunities to buy more companies. Snapchat increasingly getting competition by Facebook with derived applications is Instagram, Messenger and WhatsApp, and a host of other local apps.

Snap has vowed to try to improve in the months ahead. Tencent sees Snap as a great opportunity and many promising possibilities if able to fix some of problems. Snap reported revenues of US$207.9 million and a loss of US$0.14 per share. Analysts estimate revenue of US$237 million and losses of US$0.15 per share.

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