NBC invested $500 million in Snap, deepening an existing partnership with the augmented reality and photo messaging company.
The investment is part of an ongoing mission to drive digital growth in the media giant’s digital properties. It has also invested millennial-focused brands like Hulu, BuzzFeed, Vox and Rotten Tomatoes.
News of NBC’s investment came a day after Snapchat’s parent company hit the public markets in a much-anticipated IPO. The stock surged 44 percent on its first day, trading in heavy volume.
Despite the vote of confidence from NBC, Venice, Calif.-based Snap has had a mixed reception on Wall Street. It has yet to receive a “buy” rating from any analyst listed in FactSet.
Disclosure: CNBC parent company NBCUniversal is an investor in Snap.