Reuters quoted Manatt’s Lindsay Conner, co-chair of the firm’s entertainment and media practice, on Tencent’s recent investment in Snapchat owner, Snap Inc.
According to the article, Snap disclosed that Chinese investment company Tencent had purchased 145.8 million of its shares on the open market. In describing its stake in Snap, Tencent implied a close relationship that could go beyond passive investing and involve assisting with strategy.
Conner explained that Tencent has global aspirations and may be buying shares with that strategy in mind. “They often invest in companies to have a seat at the table, to understand business better, to see where the leading edge is between technology and content and to have an insight into technology they should adopt or license,” he said.
Read the article here.