Comcast Corp’s NBCUniversal said on Friday it had invested
$500 million in Snap as it continues to spend heavily on digital media
companies.
Snap’s shares jumped 8.6 percent to $26.59 in early
trading. The company finished its first day of trading with a 44 percent gain
compared to its IPO price of $17.00.
The investment was made as a part of the Snapchat owner’s
initial public offering, NBCUniversal Chief Executive Steve Burke said in a
memo to employees.
Earlier, CNBC reported that Snap’s stock allocation to
NBCUniversal seems to be the only one made to a new strategic investor, making
NBCUniversal the lone U.S. media company with a stake.
Comcast has invested heavily in digital-native companies
such as BuzzFeed and Vox Media, partly in an effort to better service existing
advertisers.
“With the Snap investment, we have invested over $1.5
billion in promising digital businesses in the last eighteen months,” Burke
said in the memo.
NBCUniversal has already launched entertainment programs
such as The Voice, SNL and E! News’ The Rundown on Snapchat. The media company
said it expects to launch more Snapchat shows in the coming weeks.
NBCUniversal has agreed to hold Snap’s shares for at least
a year, according to the CNBC report.
Snap disclosed last month that it expected investors
buying up to a quarter of its shares in the company’s $3.4 billion initial
public offering to agree not to sell them for a year.
Lock-up periods help companies moderate stock volatility
by preventing company insiders from selling their shares within an allotted
time.
NBCUniversal courted Snap co-founder Evan Spiegel for the
past year, CNBC said, and both companies have been working on deepening their
relationship.
Snap declined to comment beyond details noted in its
prospectus and other U.S. Securities and Exchange Commission filings.
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