Comcast’s NBC Universal invested $500m in Snap during its IPO as part of its investment in digital media.
According to a report by CNBC, the stock allocation by Snap to NBCUniversal seems to be the only one made to a new strategic investor, making NBCUniversal the only US media company with a stake.
Since Steve Burke took over as chief executive, NBCUniversal has invested in digital media assets including $400m in Buzzfeed and $200m in Vox, as well as acquiring SportsEngine and Awesomeness TV, with a total spend of around $1.5bn in the field over the last 18 months.
NBC worked with Snapchat on the Rio Olympics in partnership with BuzzFeed, and is also producing several series on the ephemeral image sharing platform, including ‘The Voice’, ‘SNL’ and E! News’ ‘The Rundown’, with the aim of targeting a younger audience that is hard to reach through linear TV.
The investment may help justify Snap’s $24bn valuation, as it demonstrates a vote of confidence from a major media company, with NBCUniversal agreeing to hold shares for at least a year. The only other key strategic investors in Snap are Alibaba and Tencent.
Snap’s trading debut saw stock increase 44%, with NBCUniversal’s investment increasing to around $720m on day one. Read the opinions of key media and marketing figureheads on the Snap IPO here.