Shenzhen-based Tencent, which popularized instant messaging in China and operates an online game portal and other Chinese Internet services, said it will invest about $300 million in Moscow-based Digital Sky, also known as DST. The companies plan to explore “new business opportunities” in the Russian-speaking Internet markets, said Tencent President Martin Lau in a joint statement Monday.

Digital Sky is known for its stakes in Russian Internet companies including Mail.ru, one of the country’s largest Web sites.

The step is the biggest commitment Tencent has made so far in taking its business outside of China, just as other Chinese online game companies are setting their sights abroad.

In addition to gaining entry to the Russian-speaking Internet market, Tencent may also benefit from Digital Skys stake in U.S. companies Facebook and Zynga Game Network Inc., the largest provider of online social games such as the games played on Facebook or on Apple Inc.’s iPhones. Last year, Digital Sky purchased a 3.5% stake in Facebook for $100 million, and has also invested $180 million in Zynga.

Through the deal, Tencent will get a roughly 10.26% stake in Digital Sky, as well as 0.51% of total voting power and the right to nominate one observer to Digital Sky’s board of directors.

Source : Konaxis