Snap, the owners of popular social media platform Snapchat, has seen Saudi Arabia’s Prince Alwaleed bin Talal invest $250m (£193.2m) into the company in exchange for a 2.3% stake valued at $10.8bn.
This news comes just days after news the firm reported a net loss of $353m (£273m) in its second-quarter results which also reported that the group saw a loss of 3 million daily active users for Snapchat.
On the back of the news, shares in Snap jumped by an initial 11%, but have since sunk to just below its closing price.
In a statement Alwaleed said: “Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it.”
The firm earned revenue of $262m (£202m) in the quarter, up 44% from the same period in 2017.