Snapchat Latest News: Snap Inc. to Dive Into the Gaming Industry?
Snap Inc., the company behind messaging and multimedia mobile app Snapchat, has been going through tough times with its share price falling as of late. All is not lost, however, as the company is looking to turn things around by entering a new and exciting territory — gaming.
According to a report from Reuters, Chinese company Tencent Holdings is looking to explore the possibilities of tapping into the realm of video games to help improve the earnings of Snap. "The investment enables Tencent to explore cooperation opportunities with the company on mobile games publishing and newsfeed as well as to share its financial returns from the growth of its businesses and monetization in the future," said Tencent in a statement.
Gamespot reported that Snap recently announced that Tencent acquired 145.8 million of its shares. The move has raised speculations from observers and analysts as to how the two companies can help each other, noting that one of Tencent's strengths are its investments in video games.
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Reuters noted that Snap shares dropped to 4.3 percent last Thursday to $12.35. The company's IPO opened at $17 per share.
Snap, for their part, said that they are looking to expand their relationship with Tencent in light of the latter's acquisition of its shares. "We have long been inspired by the creativity and entrepreneurial spirit of Tencent and we are grateful to continue our longstanding and productive relationship that began over four years ago," Snap said in its official filing.
"For its part, Martin Lau, Tencent's President, informed us that Tencent is excited to deepen its shareholding relationship with us, and that it looks forward to sharing ideas and experiences," the company added.
Among the famous titles owned by the Chinese holdings company include "Clash of Clans" and "League of Legends." In addition, Tencent also owns a huge part of Epic Games, which is behind the "Gears of War" video game franchise.
