Bloomberg News

Tencent Buys 20% of China’s for $736 Million

June 27, 2014

Tencent Holdings Ltd. (700) agreed to buy a 19.9 percent stake in (WUBA:US) Inc. for $736 million, as Asia’s largest Internet company adds to investments this year that include purchasing a stake in e-commerce website Inc. (JD:US)

Tencent will buy 36.8 million Class A and B ordinary shares in Chaoyang, China-based at $20 each, according to a statement distributed through PR Newswire yesterday. The two companies also agreed to use each other as preferred partners for local services, according to the statement.

The investment in, which provides online classified ads, will expand the choice of local services and merchants available to Tencent users, according to the statement. The tie-up will help build’s user base by capturing traffic from Shenzhen-based Tencent’s messaging services WeChat and QQ, the companies said.

Tencent is adding games and advertising services to messaging applications including WeChat, known as Weixin in China, as it competes with Alibaba Group Holding Ltd. and Baidu Inc. (BIDU:US) The company is counting on its apps and games like Blade & Soul and Candy Crush Saga to win a bigger slice of China’s 618 million Internet users as they migrate toward content on smartphones.

Tencent in March agreed to buy a 15 percent stake in and transfer some of its own assets to build a stronger competitor to Alibaba. In February, it acquired 20 percent in Dianping, the operator of a Yelp-like website in China, to strengthen location-based services.

To contact the Bloomberg News staff on this story: Zhang Dingmin in Beijing at

To contact the reporter on this story: Zhang Dingmin in Beijing at To contact the editors responsible for this story: Andreea Papuc at Joshua Fellman, Ben Livesey

The Good Business Issue

Companies Mentioned

  • WUBA
    ( Inc)
    • $42.78 USD
    • 1.24
    • 2.9%
  • JD
    ( Inc)
    • $24.56 USD
    • -0.05
    • -0.2%
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