NBC Universal invested $500 million in Snapchat’s parent company Snap during its IPO, or initial public offering, according to a letter from the company’s CEO Steve Burke.
“We will continue to be aggressive as digital content consumption increases,” he said. “It is rare to have the opportunity to invest at this stage in a company as visionary and dynamic as Snap.”
Snap’s debut on the New York Stock Exchange marks a coming-of-age for the company, best known for Snapchat’s disappearing photo posts. The company, which has emerged as one of the biggest threats to Facebook and Twitter, had a fireworks debut: Its shares jumped 44 percent on their first day of trading. But critics warns Snap’s hype may be outstripping common sense about its future, citing warning signs like giant losses and slowing user growth rates.
