Two internet powerhouses are set to unite as Tencent, one of the biggest web companies in China invest $300 million in Digital Sky Technologies of Russia.
The move is being viewed by many as China's attempt to diversify beyond their home market and transfer the success of both companies worldwide.
DST's product portfolio in Russia closely resembles Tencent's as both include major sites concerned with gaming, communication and social networking. Outside of Russia DST is most well known for investing $300 million in facebook through it's global fund.
Tencent itself, is the world's third-largest internet company and its rapid rise has seen it overtake Baidu, China's leading search engine, and Alibaba, the e-commerce group.
Tencent's properties include QQ, the world's largest instant messaging service, with more than 500m active accounts.
Their investment in DST will give Tencent a 10.26 per cent interest in the Russian group, with power to appoint an observer to its board.
Both companies are hailing the investment as the beginning of a long fruitful relationship between the two internet giants.
DST's chief executive, Yuri Milner stated, "Our teams share many common views and beliefs and a clear vision about the significant opportunities ahead.
"We look forward to working together with Tencent and benefiting from their expertise as we both push forward with our plans to capitalise on this immense growth in our markets."
Martin Lau, president of Tencent, stated: "The investment allows us to benefit from the fast-growing internet market in Russia, as well as to leverage our technical and operational know-how to strengthen the leadership position of DST ... and to explore new business opportunities in the Russian-speaking internet markets."
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