Saudi Arabian Prince Alwaleed bin Talal has invested $250 million to acquire a 2.3% stake in Snap, the company behind Snapchat. The investment values the company at $10.8 billion, a steep discount to Snap’s $17 billion market cap.
The announcement comes as Snapchat reported its first ever user count decline. In its Q2 2018 earnings, the company revealed its number of daily active users fell by 1.5 per cent to 188 million.
The company exceeded expectations by generating $262.3 million in revenue but net losses declined by 20 per cent year-on-year.
Prince Alwaleed said in a statement:
“Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it.”
Alwaleed holds stakes in other tech and social media companies, including Twitter, Chinese eCommerce company JD.com and ride-hailing app Lyft.