Looks like things might be turning around for Snap Inc (NYSE:$SNAP).
Snap, the parent company of messaging and video app Snapchat — and NBCUniversal have joined forces to create a Hollywood studio set to focus primarily on mobile entertainment.
The joint venture was announced on Tuesday, October 17, and it aims to bring longer, scripted shows to the app world. Those involved in the project will be teaming up with creative partners in an attempt to create 8-10 minute shows in hopes of keeping, and increasing, its 173 million active daily users on the Snapchat app. Unlike Facebook (NASDAQ:$FB), the deals will be exclusive.
This move should not come as a total surprise as Snapchat has already teamed up with a number of companies to create original content for its discover section. And with the success of ‘Stay Tuned’ and ‘The Rundown’, it is very possible that these new shows will be yet another hit.
That being said, there are still quite a few people who speculate that this deal will fail miserably. Why? Because a lot of users have left Snapchat for Instagram, thus causing a decline in daily users. Not only that, investors have watched Snap, Inc. try to keep its head above water for months, and whether or not the company can stay above the surface is still up for debate.
Financial details of the partnership have yet to be disclosed, but we do know that NBCUniversal, which is part of Comcast Corporation (NASDAQ:$CMCSA), made a $500 million investment in Snap in March.
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