Will Tencent’s Massive Investment Help $3 Billion Reddit Take Down Facebook & Google’s Ad Duopoly?
Tencent wants to help $3 billion social media company Reddit take down Facebook and Google’s dominant position in the digital advertising market. | Source: Shutterstock
American social news aggregation site Reddit has raised $300 million in a Series D funding round at a market valuation of $3 billion. The capital injection was led by Chinese multinational conglomerate Tencent Holdings who invested $150 million into the social site. So far, Reddit has raised $550 million in total from a myriad of investors including Sequoia, Fidelity, and Andreessen Horowitz.
Are Reddit and Tencent Strange Bedfellows?
The deal has led to an outrage online as Redditors are protesting the odd pairing of the Chinese juggernaut who is known for censoring topics the government wants and the free-speech forum, popularly known as the Front Page of the Internet. China uses technical measures to block international platforms like Reddit with controversial content.
99.99% that said they are gonna stop using #Reddit due to the #Tencent deal are just bullshitting, none of them are man enough to actually delete their account and deserved to be called out. If you are 0.01% that will actualky man up and do it, let me help you with that… pic.twitter.com/H5tDMqpY5P
— Rocket Punch (@RocketPunch1221) February 8, 2019
Social network Gab was also quick to condemn the investment.
Apps that Tencent (basically the Chinese government) has ownership in:
Epic Games (Fortnite)
Supercell (Clash of Clans and many other top mobile games)
The Chinese have the attention of your children more than you do.