Temasek Is A Major Shareholder In Snapchat Parent
In a report released by Bloomberg on Tuesday (May 16), Snap Inc., the parent company of popular social media application Snapchat, was finally dusting itself off and showing progress after its stocks plummeted last week.
This was partially helped by the fact that some of their high-profile shareholders disclosed their stakes in the messaging platform.
However, it came as a huge surprise that among the list was Singapore’s state investment firm, Temasek Holdings.
According to the report, Temasek owns 300,000 shares in the social media mammoth and isn’t shy about telling the world about it too. To put it into numbers, that’s worth approximately US$6.17 million (S$8.31 million) as of May 19 (Singapore time).
Investment Gone Wrong?
This venture may not have been a good one for Temasek though, as Snap’s shares took a nosedive last week after it reported a shortfall in revenue last week (May 10).
The share price dropped by 21%, from US$22.98 on May 10 to US$18.05 on May 11 — a loss in value of almost US$6 billion.
Even though the stock price has stabilised a fair bit, Temasek might have just lost quite a bit of money in the deal.
Thankfully for Snap, its share rose 8.4 per cent to US$20.74 on Monday (May 15), after the high-profile investors including Temasek disclosed their stakes.
We wonder who made the decision to invest in Snap — did Temasek follow the lead of other investors, or was it a — ahem — snap decision?
Loss To Competitors
The loss in revenue was a result of an increasing number of competitors in the app market.
What Will Temasek Do?
Will Temasek hold onto its shares in hopes of Snapchat returning to popularity?
Or will it sell off the shares lest the stock price plummets even more?
Whatever it does, we hope that the brains in the company can prevent losses, as this is our tax money that we are talking about.