NBCUniversal continues digital push with $500m stake in Snapchat owner
NBCUniversal, owner of US national network NBC, has invested $500 million in Snap Inc, the media company which operates the Snapchat instant photo messaging app, as part of the company’s initial public offering last week.
NBCU purchased shares in Snap Inc at $17 a share before trading launched on the open market, which caused the value to surge to $25 per share.
Snap Inc was valued at nearly $30 billion once trading begun on Thursday, more than double the value of its rival Twitter.
Steve Burke, NBCU chief executive, said: "This is a significant milestone in our growing partnership with Snap, and we look forward to participating in Snap's success as an investor and continuing to work closely with them for years to come.”
NBC has an existing partnership with the social media company to produce and publish video content, including coverage of last summer’s Olympic Games in Rio de Janeiro, on Snapchat’s Discover page.
Burke has said that NBCU has plans to add more content to the Snapchat platform in the coming weeks.
In November, NBCU invested an additional $200 million in BuzzFeed, the online media company which it already had a stake in, and Burke has said the company has invested over $1.5 billion in digital-related businesses over the last 18 months.
Buzzfeed was responsible for supporting and curating NBC’s production of Rio 2016 content for Snapchat.
Prior to Snap Inc’s impressive IPO last week, the social media company revealed that Snapchat’s coverage of American football’s NFL attracted 42 million unique viewers in US last season.
The NFL’s multi-year partnership with Snapchat includes exclusive video clips and behind-the-scenes footage from every game across the season on a designated NFL channel. In 2015, the NFL and Snapchat partnered in a season-long venture on the Discover page, which had 70 million total views and 31 million unique viewers, according to the league.