Published On: Thu, Nov 9th, 2017

Tencent could play a purpose redesigning Snapchat following $2B investment

Tencent, a Chinese internet hulk valued during $470 billion, might have a palm in rebooting a Snapchat app to make it some-more rival with Instagram and Facebook.

Off a behind of some really bad financials announced this week, parent association Snap pronounced it is retooling a messaging app “to make it easier to use.”

Now Tencent, that upped a seductiveness in Snap with a squeeze of 12 percent of a company — forking out around $2 billion in a routine — might be on palm to help. It pronounced is positioned to capacitate Snap to puncture into a knowledge of flourishing WeChat, China’s widespread messaging app that boasts 800 million monthly users worldwide, and potentially daub into other business lines, including a games business which includes Clash Of Clans builder Supercell.

“The investment enables Tencent to try team-work opportunities with a association on mobile games edition and newsfeed as good as to share a financial earnings from a expansion of a businesses and monetization in a future,” a Tencent orator told Reuters in a statement.

Tencent initial invested in Snap in 2013 nonetheless a distance of a seductiveness in a association is not open information. As backers go, a association brings substantial poke and expertise in a messaging space. Most considerable is a demeanour in that it incited WeChat from a messaging app into a amicable ‘Swiss army knife’ that users in China spin to for a operation of services including payment, e-commerce, internal services, investments, banking and more.

Tencent also has a long-standing seductiveness in U.S. tech companies, and it hasn’t been bashful subsidy a series with investments. Its U.S. portfolio includes discuss app Kik, Tesla and games organisation Activision, while it has invested in global messaging apps like Hike in India and South Korea’s Kakao.

This knowledge is expected to be welcomed by Snap as it looks for what trends will come subsequent in messaging and choice ways it can rivet users to contest with Instagram.

Featured Image: Drew Angerer/Getty Images

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