Snapchat Inc.’s valuation was cut by a quarter by one of its biggest backers, the latest evidence that private technology companies are losing some of their luster.
Fidelity, a fund manager which invested in the creator of the mobile app for sending disappearing photos and videos, marked down its stake in Snapchat by 25 percent to $34.5 million in the third quarter, according to data from Morningstar on Tuesday. Snapchat had raised cash from investors at a $16 billion valuation earlier this year, a person familiar with the matter said in May, bringing its total fundraising to $1.2 billion. The Financial Times earlier reported Fidelity’s writedown.
Sarah Frier & Miles Weiss