Tencent Will Invest $300 million in DST

Tencent Holdings Limited, a leading provider of Internet and mobile & telecommunications value-added services in China, and Digital Sky Technologies Limited (“DST”), one of the largest Internet companies in the Russian-speaking and Eastern European markets, today jointly announced that Tencent will invest approximately US$300 million in DST, thereby establishing a long-term strategic partnership between the two companies.

The aggregate consideration of approximately US$300 million, which will be paid in cash, gives Tencent approximately a 10.26% economic interest in DST upon completion of the transaction. Tencent will hold approximately 0.51% of the total voting power of DST and have the right to nominate one observer to the DST Board.

DST and Tencent will embark on a long-term partnership and co-operation as they seek to benefit from each other’s insights gained from their respective markets. DST’s deep understanding of the Russian Internet market, together with its leading brands such as Mail.ru, Odnoklassniki and VKontakte, will enable Tencent to benefit from the high growth of the Russian-speaking Internet market. At the same time, Tencent’s leading position in China will provide DST and its companies with unique and valuable operational insights and access to its regional network that can help DST further accelerate its growth path.

Chief Executive Officer of DST, Mr. Yuri Milner, said, “We are extremely pleased to welcome Tencent as a shareholder in DST. This investment is a vote of confidence in DST from the market leader in China and one of the world’s most successful and dynamic Internet companies overall. Our teams share many common views and beliefs and a clear vision about the significant opportunities that lay ahead. We look forward to working together with Tencent and benefiting from their expertise as we both push forward with our plans to capitalize on this immense growth in our markets.”

President of Tencent, Mr. Martin Lau, said, “We are excited to enter into a long-term strategic partnership with DST, a key global Internet player and a leader in Russian-speaking Internet markets. The investment allows us to benefit from the fast-growing Internet market in Russia, as well as to leverage our technical and operational know-how to strengthen the leadership position of DST and explore new business opportunities in the Russian-speaking Internet markets.”

DST was founded in 2005 and is one of the largest Internet companies in the Russian-speaking and Eastern European markets and one of the leading investment groups globally to exclusively focus on internet related companies. DST has controlling stakes in Mail.ru and the social network “Odnoklassniki” (“Schoolmates”) and blocking stake in VKontakte. DST, together with its affiliate DST Global, also hold stakes in Internet world leaders such as Facebook and Zynga. DST is a privately held company backed by leading Russian and Western financial institutions.

Tencent aims to enrich the interactive online experience of Internet users in China by providing a comprehensive range of Internet and wireless value-added services. Through its various online platforms, including Instant Messaging QQ, web portal QQ.com, QQ Game portal, multi-media social networking service Qzone and wireless portal, Tencent services the largest online community in China and fulfills the user’s needs for communication, information, entertainment and e-Commerce on the Internet.

Tencent has three main streams of revenues: Internet value-added services, mobile and telecommunications value-added services and online advertising.

One thought on “Tencent Will Invest $300 million in DST

  1. Well, that was interesting. What I found even more interesting & humorous is that they blew it up in the first place, rather than using a tugboat & a cable to tow the carcass out to deep sea where other critters would eat it for dinner. Eh, hello? What a bunch of pot headed or air headed morons. LOL, so they still had to bury a couple of large pieces, they now had smaller pieces all over the place & the poor citizens car got smashed. There were so many idiots back in the ’70s. I wonder if they would do that today. Hmmm….considering some of the really stupid things I’ve seen people do in other areas of endeavor, it wouldn’t surprise me. Oh well, Jamie, I agree that whales are beautiful & amazing creatures alive, but, I agree w/ KC that when they are a dead carcass, then they are fertilizer, food or trash that rots away like everyone else. I think most people would agree & keep in perspective. I have seen people on the beach & ships stop everything & just gather in absolute awe when they see a whale(s) break the surface for a while. People are just ecstatic & the overwhelming majority love animals. It’s the very few who mistreat animals & even the many fishermen/hunters I’ve met are interested in making the capture or death as quick as possible & then eating the critter. There needs to be balance in all things, including consumption of wildlife, otherwise the animals overpopulate & cause their own problems.

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