Chinese tech giant takes 12% stake in ailing Snap

From CNET: Chinese tech behemoth Tencent has taken a 12 percent stake in social media giant Snap, according to the Financial Times. Tencent sits among China's three biggest tech companies along with Baidu and Alibaba, collectively known as BAT.

The news, revealed Wednesday in Snap's quarterly filing with the US Securities and Exchange Commission, comes after the company posted disappointing results of its growth this quarter.

This is not Tencent's first investment in a US company that brought us disappearing messages. Tencent bought a 5 percent stake in Tesla in March. Tencent, the creator of popular Chinese mobile game Honour of Kings, also owns Riot Games, the maker of League of Legends.

It's no secret that Tencent has been making efforts to expand to the US. Also the owner of Chinese messaging platform, WeChat, Tencent brought its digital payment service, WeChat Pay, to the US earlier this year.

In the SEC filing, Snap said it has "long been inspired by the creativity and entrepreneurial spirit of Tencent."

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