China's Tencent buys Google-backed social-network

Tuesday 24 August 2010 05:18 EDT
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China's largest Internet company Tencent Holdings Ltd has bought a Google-backed Chinese social networking company for more than $60 million, the China Business News reported today.

Tencent, China's No.1 online game operator and its largest instant messaging provider, had bought Comsenz, a Beijing-based social-networking provider, Comsenz said in a statement on its website. Comsenz is backed by Google Inc, Sequoia Capital and Morningside Ventures.

The deal was reportedly worth more than $60 million (£39 million), the newspaper said, quoting a source familiar with the situation.

Tencent could not be reached for comment.

Tencent, which bought a 10 per cent stake in Russian Facebook investor Digital Sky Technologies (DST) for $300 million (£195 million) earlier this year, could be on the look out for more acquisitions as it seeks to expand its dominance beyond China.

China's Internet space is becoming more cut-throat as users become more sophisticated and selective over which products and services they use and companies jostle for attention in an increasingly crowded arena. China is the world's largest Internet market by users with 420 million online.

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