Russia’s leading internet investor, Digital Sky Technologies (DST), finds itself on the receiving end of investment capital after China’s Tencentspent significantly to purchase a minority share. Valuing DST at USD 3 billion, Tencent has invested USD 300 million for a 10.26% stake and voting power equal to .51%. The two companies are not strangers, having partnered in the past in a mutually beneficial project to help each one gain from the experience of the other in their respective markets. They also share a common investor in Naspers/MIH Group.
The Tencent investment, which still must gain shareholder approval before moving forward, is intended to help foster a more long-term and strategically beneficial relationship between the two companies. The markets responded positively to the news as Tencent’s stock rose to HK $161.60 in Hong Kong the day of the announcement. Company stock has been steadily declining this year, down 4.1% from its peak in 2009.