A day after Snap posted
dismal results for 3Q, the company has revealed that its senior vice president of engineering, Tim Sehn, is resigning effective December 1.
Sehn's departure, confirmed in a regulatory filing Wednesday, comes as Snap plans to release a comprehensive overhaul of its signature platform, Snapchat, on December 4, per Business Insider.
That effort will now be shepherded along by Jerry Hunter, who joined the company last fall as VP of core engineering and reported to Sehn (pictured).
Sehn's departure follows the exits of several other Snap executives this year, including general counsel Chris Handman, head of creative strategy Greg Wacks, and Robyn Thomas, vice president for legal and human resources.
But the news for Snap isn't all bad: The company has revealed that Chinese internet giant Tencent now holds a 12% stake, building a position of roughly 145.78 million shares via the open market. With shares of Snap (NYSE: SNAP) plunging nearly another 15% Wednesday to close at $12.91 apiece, Tencent's stake is currently worth $1.88 billion. For context, Snap has a current market cap of some $15.46 billion.
Snap's performance since IPO
The disclosure of Tencent's investment comes as something of a surprise. In this week's SEC filings, Snap named the WeChat parent in a list that also included Facebook, Google and Twitter as companies representing its "significant competition."
However, Tencent has said that it believes Snap remains an innovative company and that it sees "an opportunity between the two with news feed and mobile game publishing," per the Financial Times.
Given its budding interest in the company, Tencent could make a play for a greater stake in Snap or acquire it outright, especially if Snap's shares soften further.
Tencent has been a prolific investor over the years, and PitchBook users can view the data on the company's M&A activity.