Tencent buys 10 percent stake in Snap
The Chinese internet company Tencent has acquired a 10 percent stake in Snap, with the social media company struggling to boost user growth.
Tencent runs the WeChat messaging app, as well as online payment platforms and games. Earlier this year, it bought a 5 percent stake in Tesla Inc.
Snap Inc. is the parent company of Snapchat, a camera app that lets people send short videos and images. The company, based in Venice, California, said in a regulatory filing Wednesday that Tencent bought 145.8 million shares.
Snap revealed Tuesday that its loss tripled to $443.2 million during the third quarter on weak user growth and revenue. The app is getting a redesign to make it easier to use.
Snap faces intense competition from Apple, Facebook's Instagram and WhatsApp, and Google's YouTube.
Shares, which had fallen 20 percent before the opening bell, cut those losses in half on news of the Tencent interest.
It's been a busy week in cross-Pacific deal making.
With President Donald Trump meeting in China with President Xi Jinping for the first time, U.S. and Chinese companies signed deals valued at around $9 billion.