Saudi Prince Al Waleed Talal invests $250 million in Snap Inc.

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In a recent development, it has been reported by a tech magazine that the Saudi royal family had invested $250 million in Snap Inc. buying out 2.3% stakes of the company. It is now critical to analyse the future of snapchat after the huge investment.  As reported by tech crunch Snap has refused to back up the news ,but after an initial 11 percent hike after earnings was announced, Snap shares sank to just below the closing price.

The Saudi prince Al Waleed Talal who formerly owned a share of Citigroup and Newscorp had earlier invested in Lyft and Twitter and recently in terms with a European music service Deezer.

The prince has had meetings in the past with Snapchat CEO Evan Spiegel and COO Imran Khan back in 2015 to discuss a possible investment, but nothing had materialised. The Arabic press release explains that the deal was done on May 25th. “Our investment in Snapchat is an extension of our strategy for personal investment in new technology through leading companies such as Lyft, JD.com, and social networking sites, Twitter” the release explains. “Snapchat is one of the most innovative social networking platforms in the world and we believe it is just beginning to surpass its true potential.”

A press release disclosed that the deal with Snap Inc. was made earlier this year in May. The release said “Our investment in Snapchat is an extension of our strategy for personal investment in new technology through leading companies such as Lyft, JD.com, and social networking sites, Twitter."  “Snapchat is one of the most innovative social networking platforms in the world and we believe it is just beginning to surpass its true potential.”