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Tencent Invests $150 Million In Reddit

Chinese company Tencent invested $150 million in social news aggregator and discussion site Reddit, in a round that values the site at around $3 billion.

This is far from the amount Reddit received from its previous funding round in 2017, which put it at a value of $1.7 billion. In a recent Series D funding round, the site raised a total of $300 million from four primary companies: Tencent, Sequoia, Fidelity and Andreessen Horowitz, three of which have previously invested in the site.

According to reports from The Street, Tencent has been “taking small stakes in many different tech firms around the world as a way of keeping up with the latest technologies, as well as to build out its own ecosystem of products and services.” Some of the companies it has invested in include automotive company Tesla, music-streaming app Spotify, tech and camera company Snap, and Fortnite creators Epic Games.

The newest on Tencent’s list is Reddit Inc., a San Francisco-based company that runs a website with roughly 330 million active users monthly. In 2018, the site was declared the 17th most visited website in the entire world– 6th in the United States alone– and brought in around $100 million in revenue from ads and sponsorships.

The investment is admittedly strange however, as the social media site is actually banned in China, according to reports from Gizmodo.

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