Rabat - Saudi Prince Alwaleed Bin Talal announced Tuesday on Twitter that he has acquired a 2.3 percent share in Snapchat.
Rabat – Saudi Prince Alwaleed Bin Talal announced Tuesday on Twitter that he has acquired a 2.3 percent share in Snapchat.
Bin Talal, who said the deal was made May 25, initially met Snap CEO Evan Spiegel and the company’s chief strategy officer Imran Khan, in 2015.
The investment in the social media platform cost the Saudi prince $250 million at an average cost of $11 per share.
“Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it,” Prince Alwaleed said in a statement.
The announcement came at the same time Snap released its second-quarter financial results. It posted a big loss and reported that its number of daily active users has dropped for the first time since it went public in March 2017. After the report, Snap shares rose as much as 11 percent.
Prince Alwaleed’s investment in Snap is not his first social media buy. He previously bought shares in Twitter.
Prince Alwaleed will not have a say in the management of Snapchat, however, because the class A shares that he acquired do not include the right to vote on business matters.
Alwaleed Bin Talal is a member of the Saudi royal family, and was a top official arrested for alleged corruption. He was released after reaching a financial settlement estimated at $6 billion with the Saudi attorney general