NBCUniversal invested a whopping $US500 million in Snapchat parent company Snap’s IPO, as “part of a strategic investment and partnership,” sources told CNBC’s Andrew Ross Sorkin.
After Snap popped 44% on day one, that stake is worth around $US720 million, a cool $US220 million up. Not bad for a single day.
Sorkin noted that NBC appears to be the only media company with a strategic stake in Snap so far (the other strategics are Alibaba and Tencent).
But it certainly isn’t NBC’s only big strategic investment in digital media. The company invested in BuzzFeed for the second time late last year, bringing its total to $US400 million in the company, and has put $US200 million in Vox.
NBC courted Snap CEO Evan Spiegel “for the past year” CNBC reported. The companies also worked together (with BuzzFeed as well) on the Olympics, which snagged a massive 2 billion views.
NBC has agreed to hold the shares for at least a year, according to CNBC.