Saudi Prince Invests $250 Million in Snapchat Even as Company Reports Massive Loss

Snapchat may take a huge user base, but like WhatsApp, the company has thus far failed to turn that popularity into profitability. Snap Inc. lost a whopping $353 meg during the last quarter, but that apparently isn't scaring investors away. The company is now believed to take secured an investment of $250 meg from Saudi Arabia's Prince Al-Waleed bin Talal in exchange for a 2.3 pct stake in the visitor.

إستثمرت ٩٥٠ مليون ريال سعودي لاتمام صفقة شراء حصة بنسبة ٢,٣٪ في شركة سناب شاتhttps://t.co/XXOgEvEB2W

I invested $250 Million to learn 2.3% stake in @Snapchat companyhttps://t.co/bdAMGVw3DI pic.twitter.com/jBIiAfqy7t

— الوليد بن طلال (@Alwaleed_Talal) August 7, 2018

As can be seen in the tweet to a higher place, Prince Talal fabricated the proclamation via Twitter, where he also posted a video of him with Snap's founder and CEO, Evan Spiegel. Farther details about the deal can be found on the Prince'southward official website, which said that the bargain was "finalized on 25/05/2018 with an estimate average cost of $11 per share".

"Snapchat is ane of the most innovative social media platforms in the earth and we believe information technology has simply simply begun to scratch the surface of its true potential and we are blessed to be part of it", said Prince Talal in a statement. The investment values Snap Inc. at $ten.8 billion, which is a massive discount over the visitor $17 billion market-cap.

The post as well revealed that he already holds significant stakes in a number of other leading global technology companies, including Twitter, JD.com and Lyft, among others.

Interestingly, Snap posted its second quarter earnings on the mean solar day news of the latest investment became public, revealing that the number of daily active users on Snapchat showed a marked downward trend during the quarter. The company, all the same, reported a narrower loss than expected, while its revenues equally well as ARPUs (average revenue per user) registered double-digit growths.