×
You will be redirected back to your article in seconds

Snapchat Hauls in $175 Million From Fidelity Investments

Social media company maintains previous $16 billion valuation with funding: WSJ

Snapchat raised $175 million from Fidelity Investments, bringing the youth-skewing vanishing-message service to more than $1.3 billion raised to date.

With the funding, first reported by the Wall Street Journal, Snapchat maintains its previous $16 billion valuation, per the report. While still an eye-popping figure, the flat valuation reflects a more cautious approach by tech investors.

The Venice, Calif.-based company boasts more than 100 million active users predominantly in the millennial demo and claims to deliver more than 8 billion video views daily, more than doubling in the last six months.

Other investors in Snapchat include Alibaba Group, Benchmark, General Catalyst Partners, Glade Brook Capital Partners, HDS Capital, Institutional Venture Partners, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, York Capital Management and Yahoo.

The core of Snapchat’s service revolves around user-to-user “snap” photo and video messages, which disappear 10 seconds after recipients view them. But the company also has extended the service to be a media-delivery platform, and has inked partnerships with the likes of Viacom, ESPN, CNN, Time Inc., BuzzFeed and Vice to promote and distribute content. Snapchat also recently pacted with Nielsen to measure video-ad units viewed on the service.

On Friday, Snapchat announced that it is reteaming with Major League Baseball, after their initial partnership last year. The expanded multiyear partnership will kick off this season on March 11 with “Snapchat Day” in MLB’s spring training ballparks with access to players’ own snaps in special “MLB Live Story” section. For the first time, MLB players will be permitted to use smartphones, including using an official “SnapBat” (like a bat selfie-stick), in dugouts and bullpens during live games.

Also under the pact, Snapchat will cover MLB games and events, including opening day on April 3, the All-Star Game and the postseason, with access to official MLB logos, marks and exclusive behind-the-scenes content featuring star players.

More Digital

  • Facebook Logo

    Facebook Shuts Down Controversial Ovano VPN App

    Responding to a continued backlash over its data collection practices, Facebook pulled the plug on its Ovano VPN app Friday. Ovano, which promised users an added level of privacy while using public Wifi hotspots, was used by Facebook for market research purposes. Facebook removed the app from the Google Play store Friday, and the company [...]

  • Smosh

    Smosh Acquired by Rhett & Link's Mythical Entertainment

    Smosh, the long-running YouTube comedy brand, has been acquired by Mythical Entertainment, the company formed by Rhett & Link, hosts of comedy show “Good Mythical Morning.” As first reported by Variety last week, Mythical emerged as the leading candidate to buy Smosh, which was left stranded after parent company Defy Media shut down without warning [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Roku headquarters

    Roku Aims to Top $1 Billion in Revenue in 2019, Beats Holiday Quarter Earnings Expectations

    Roku wants to become a billion-dollar company in 2019, and invest more in its ongoing international expansion. The streaming-device maker told investors on Thursday that it expects to generate between $1 billion and $1.025 billion this year, and that international growth was one of its key investment areas for 2019. Roku made these announcements as [...]

  • Vice Media

    Vice Media Taps Joe Simon as Chief Technology Officer (EXCLUSIVE)

    Joe Simon has been tapped as chief technology officer at Vice Media. The newly created role will include oversight of data analytics, engineering, information technology, media operations, media technology, post production, and systems management. Prior to Vice, Simon spent three years as Encompass Digital Media’s chief operating officer. Previously he held the chief technology officer [...]

  • att_logo

    AT&T Suspends YouTube Ad Spending as Boycott Over 'Pedophilia' Videos Scandal Widens

    AT&T, one month after it thought it was safe to advertise on YouTube again, said it is pulling all advertising spending from the world’s biggest video platform. The telco joins a boycott by marketers alarmed by the discovery that a secret group of child predators has been using YouTube to make sexual comments about kids. [...]

More From Our Brands

Access exclusive content