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Tencent funding may value Reddit at USD 3bn: TechCrunch
Posted on Friday, 08 February 2019 12:12
Reddit is working towards a series D funding round that could give the US social news aggregator, web content rating and discussion website a post-deal valuation of as much as USD 3.00 billion, according to TechCrunch. One of the more interesting aspects to this report by the online technology industry news publisher is that the Chinese Internet behemoth Tencent is leading the financing by stumping up the first USD 150.00 million. In all, the link-sharing forum operator is hoping to raise up to USD 300.00 million, and while TechCrunch’s sources could not give exact details of the series D, the website suggested the balance could come from existing investors. Previous backers include Fidelity Ventures, Sequoia Capital, Andreessen Horowitz, all of which took part in a USD 200.00 million funding round in July 2017 with a post-money valuation of USD 1.80 billion. TechCrunch noted Reddit may be growing steadily, but, at the moment, it is using venture capital to bankroll operations until the introduction of newer advertising revenue-generating products. Perhaps best known as the operator of WeChat, Tencent has been pushing out more and more into other sectors: for example, in November 2017 it bought USD 2.20 billion-worth of shares in Snap through the open market. As of 30th June 2018, its investment portfolio amounted to CNY 353.81 billion and comprised equity in associates and joint ventures and available-for-sale financial assets, among others. In first six months of 2018, Tencent targeting listed and unlisted entities, mainly operating in the US, China and other Asian countries, as well as sectors such as games, entertainment, technology and other Internet-related activities. Potential investment recipient Reddit had 153.00 million posts, 1.20 billion – and counting – comments and 27.00 billion votes across thousands of interest boards ranging from news and sport to cosmetics and cute animals at the end of November 2018. It also had over 330.00 million monthly active users, organised by almost 150,000 communities, and 14.00 billion views per months, as at the end of November 2018. © Zephus Ltd