NBC Universal Invests $500 Million in Snapchat at IPO
- Author: Carolyn Briggs Mar 03, 2017,
Mar 03, 2017, 17:54
Snap Inc (NYSE:SNAP) allocated some $500 million in stock to Comcast-owned media giant NBCUniversal recently, according to sources close to the matter. It was the largest U.S. IPO since 2014, and the IPO price gave the company an initial market capitalization of $19.7 billion.
NBCUniversal entities have partnered with Snap's Snapchat platform to produce short-form digital series including properties tied to "Saturday Night Live" and "The Voice", among other projects. In an exclusive report, another division of Comcast (CNBC) reports that NBCU invested $500 million in Snap.
Reps for NBCU and Snap were not immediately available for comment.
Mid-day trading of Snap Inc.'s share rose 8% on Friday to $26.41.
"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", NBCU chief Steve Burke told staffers today in a memo. But the company has agreed to hold on to its shares for at least a year.
Lock-up periods help companies moderate stock volatility by preventing company insiders from selling their shares within an allotted time. The company worked with BuzzFeed to develop content for Snapchat's Discovery channel during the Olympics. News' "The Rundown", and more are in the works. It invested $200 million in BuzzFeed and $200 million into Vox Media.
In total, Mr. Burke said NBCU has invested over $1.5 billion in digital businesses over the last 18 months.