Tencent sees video games, more ads in Snapchat's future

Games and a newsfeed have not been a part of Snapchat, although the company on Tuesday said it was planning a redesign

Chinese internet giant Tencent Holdings said on Thursday it could help Snapchat owner Snap publish video games and improve ad sales after acquiring a 12 per cent stake in the US social media network.

Snap’s disclosure in a US regulatory filing that Tencent had recently bought 145.8 million of its shares on the open market set off a wave of speculation among investors about the relationship between the firms.

Shares in Snap closed at $12.91 on Wednesday, down 14.6 per cent, as investors pummeled the company for slow user growth and treated Tencent's move as an investment rather than the