Line Corporation, owner and operator of the free call and messaging app Line, has agreed to acquire ordinary shares newly issued by Snow, through a third-party allotment. Snow is the developer and operator of the selfie pic and video app ‘Snow’ that is distributed primarily in Asia. Line will acquire approximately 110,000 ordinary shares newly issued by Snow through a third-party allotment. As a result, Line will own a 25 percent voting interest in Snow, and Snow will become an equity method affiliate of Line. Line said details of the contract to be entered into by Line and Snow in connection with this investment will be further discussed by both parties.
The Snow app features face recognition-enabled stickers and GIF-enabled chat functionality. With Snow, users pick from over 700 stickers and 30 types of filters to liven up their photos and videos, then send the finished product to their friends or post them within the Snow app. The app first launched in Korea, and was expanded to Japan and China in November 2015 and February 2016, respectively.
Via its investment in Snow, Line expects to contribute to the further expansion of Snow’s service. For Line, the acquisition of shares in a company serving Korea and China is expected to help strengthen both companies’ relationship with each other and help Line expand its business in these regions in the future.
