NBC Invests $500 Million In Snap, Part Of Platform's IPO

Hitching a ride as part of Snap Inc’s. soaring IPO, NBCUniversal has invested $500 million in the social media company.

NBCUniversal's investment builds on its many existing marketing deals with the company. The company’s Snapchat platform is producing short-form digital series tied to “Saturday Night Live” and “The Voice,” and E! News’ The Rundown.

News of NBC’s Snap investment was first reported on CNBC.

Steve Burke, CEO of NBCUniversal, in a memo sent to employees on Friday, said: “We expect to launch even more Snapchat shows with additional NBCU brands in the coming weeks among other projects. On the heels of that success, we are already planning an expanded partnership with Snapchat and BuzzFeed for the 2018 Winter Games in South Korea."

Burke also notes other recent NBCUniversal digital media investments.

“In the last year and a half, we have invested $400 million in BuzzFeed, $200 million in Vox, and launched key initiatives with both companies. We also acquired Sports Engine, a digital business that is revolutionizing the way youth sports are managed online.”

Over the last year and half, NBCUniversal's digital investments have totaled about $1.5 billion, he said. As part of its deal in acquiring Dreamworks, NBC is now a majority shareholder in Awesomeness TV.

Mid-day trading of Snap Inc.’s share rose 8% on Friday to $26.41. The day before, Snap’s stock price soared 44% over its IPO.

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