Users protest after Tencent invests in Reddit

Users protest after Tencent invests in Reddit

The series D funding round saw a $150 million investment from Tencent and the company's former investors, including Sequoia, Fidelity, Tacit and Snoop Dogg.

Chinese tech giant Tencent has invested 150 million US dollars in American online forum site Reddit, with the social news aggregator confirming Monday that it attracted 300 million USA dollars in a fundraising round that values the company at more than three billion US dollars.

That's up from a $1.8 billion valuation from the company's last funding round, which brought in a $200 million investment in 2017.

Reddit said it planned to use the money for global expansion and to enhance its digital advertising platform to better compete in a market where Facebook and Google now take in most of the revenue.

News of Tencent buying into the popular social news website, which is banned in China, prompted concerns by some users that the platform could be vulnerable to the kind of online censorship that takes place in that country.

According to Bloomberg, American news feed website Reddit received $300 million in total in a new round of financing.

Steve Huffman, the chief executive officer of Reddit, said Tencent's expertise in video games is part of what drew the two companies together. Access to Reddit is blocked in China.

They include video of the Tiananmen Square protest and pictures comparing President Xi Jinping to the portly Winnie the Pooh.

Founded in 2005, Reddit has consistently drawn an avid, young core user base, with 50% of its 330 million monthly active users between ages 18-24.

Much of that criticism has come from Reddit users.

Chinese internet giant Tencent Holdings Ltd. was among the investors in the round, which values the link-sharing website at $3 billion.

Reddit is also known for ask-me-anything sessions with well-known people such as Microsoft Corp cofounder Bill Gates and former United States president Barack Obama.