Digital Sky Get Significant Investment from China’s Tencent

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.