Published On: Mon, Feb 27th, 2017

Chat app Line doubles the interest in Snapchat counterpart Snow

Ahead of Snap’s eagerly-awaited IPO, Line, one of a U.S. tech IPO highlights of 2016, has doubled down on sister use and Snapchat counterpart Snow.

Line and Snow both share a same primogenitor association — Naver — though the two firms have increasingly turn financially entwined. Line bought adult 25 percent of Snow final Sep for $45 million, and now it is scarcely doubling a equity to 48.6 percent, according to a filing. The understanding values Snow during around $207 million (235 billion KRW), according a filing in Japanese, adult from 200 billion KRW ($177 million) in September.

Line went open in a twin U.S.-Japan IPO that lifted $1.1 billion. Shares primarily popped 50 percent on a firm’s Tokyo debut, but there’s been small to applaud given then. Line saw user numbers drop for a initial time in Jan — notwithstanding a record year of income in 2016 — while its userbase increasingly singular to 4 countries: Japan, Indonesia, Taiwan and Thailand. Expanding a participation is an area where it feels that increasing partnership with Snow could bear fruit.

As partial of this new deal, Line has concluded to give its print app business to Snow — that includes selfie app B612, a core Line Camera app, food-focused Foodie, and a makeup preview app Looks — in sequence to “consolidate and urge a efficiency” of a services.

Line pronounced in another filing that it has been operative closely with Snow given a Sep investment though a rival inlet of print and video apps means that this understanding to mix many of their resources will assistance both Snow and a Line apps to grow.

Snow reached 40-50 million active users in January, with a app quite renouned in Japan, Korea and China. (Its rising recognition triggered investment seductiveness from Facebook, that was rebuffed.) While Line hopes it might be means to daub into that success to boost a core discuss app, it pronounced that a camera apps have proven to be renouned in markets like China, Japan, Vietnam, Indonesia, Brazil and Mexico. Given that any one ties behind into Line — nonetheless they can be used but a Line comment — it is also betting that it can retreat a globalization struggles by giving these apps some-more leisure to grow around this deal.

Investors positively seemed bullish. Line’s Tokyo share cost reached 3,895 JPY during tighten on Friday, when Line done a announcement. That was adult from 3,660 JPY during a start of a day. However, a share cost dropped more than dual percent when a marketplace reopened on Monday.

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