Chinese internet giant Tencent (TCEHY) has invested for the first time in social news and discussion site Reddit, putting in $150 million in a round that values Reddit at $3 billion.
In all, Reddit raised $300 million in its recent Series D funding round from Tencent, Sequoia, Fidelity and Andreessen Horowitz, with the latter three having invested previously. Reddit was valued at $1.7 billion in its previous funding round in 2017.
Tencent has made a habit of taking small stakes in many different tech firms around the world as a way of keeping up with the latest technologies, as well as to build out its own ecosystem of products and services. Among the hundreds of companies it's invested in are electric carmaker Tesla (TSLA) - Get Tesla Inc Report , social media site Snap (SNAP) - Get Snap, Inc. Class A Report , Chinese ride-hailing giant Didi Chuxing and Epic Games, publisher of the red-hot video game Fortnite.
Reddit reportedly has 330 million monthly active users and brought in $100 million in revenues in 2018.
Reddit CEO Steve Huffman told CNBC that his company plans to use the investment to grow internationally, upgrade Reddit's website and try to compete with Facebook and Google's digital ad dominance.
Tencent shares were down 0.16% at $44.62 Tuesday and are up 13% so far this year.