The company bought 145.8m non-voting shares in the social media messaging firm Snap, according to the latter’s latest filing to the Securities and Exchange Commission (SEC).
The Chinese holding firm, which operates two messaging companies WeChat and QQ as well as a video streaming service and film studio, is looking to partner closely with Evan Spiegel’s firm.
“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. 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,” Snap noted in its SEC filing.
This comes after shares in Snap plunged after it reported losses of more than $400m in its latest financial quarter. The tech firm, which also had lower than expected revenue and user growth, said it would make the app easier to use following the revelations.
Separately, the investment is significant as it comes as China toughens regulations around offshore investments.