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Prince Alwaleed Bin Talal of Saudi Arabia announced he has purchased 2.3 percent of Snap.
Prince Alwaleed disclosed on Tuesday that he made the $250 million investment on May 25, at an average cost of $11 per share. He initially met with Snap CEO Evan Spiegel and Imran Khan, the company's chief strategy officer, in 2015, when the two executives visited Riyadh.
"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," Prince Alwaleed said in a statement.
Prince Alwaleed has also invested in Twitter, JD.com and Lyft, among other companies.
Snap has held discussions to expand its presence into Saudi Arabia, sources familiar with the talks told CNBC in April. The company was mulling opening an office, as well as working on a content deal with MiSK Foundation, a Saudi youth empowerment organization chaired by Crown Prince Mohammed bin Salman.
Snap also posted second quarter earnings on Tuesday. Though its service lost daily active users, the company reported a narrower loss than expected as well as double-digit growth in revenue and average revenue per user. Snap shares rose as much as 11 percent after the report.
Note: CNBC parent company NBCUniversal is an investor in Snap.