Reddit is about to get a huge new round of investment of up to $300 million. As Gizmodo points out, “the first $150 million is reportedly expected to come from the Chinese tech giant Tencent, the first ever Asian technology company to pass a $500 billion market value.” The investment is complicated since Reddit is banned in China via the Great Firewall of China. Also, “Tencent is not merely a resident of China’s internet — the company is one of the most important architects of the Great Firewall,” reports Gizmodo. “It’s an interesting source of cash for a Silicon Valley company whose product is essentially speech.” From the report: Tencent is, at great cost and ultimately for great profit, literally reinventing censorship in China. The Great Firewall was not built by the Communist Party in Beijing, it’s built by the tech giants all around China. This opaque but clearly powerful relationship between the $500 billion company and the Chinese government raises interesting and unanswered questions about Tencent’s forays into the West, including questions about Reddit’s future.
The pending Chinese investment in Reddit, a social media company with relatively little Chinese-language community, is a richer twist on that old tale, and it’s a part of Tencent’s expanding global investment strategy. The Chinese company owns about 12 percent of Snap, for instance, even though Snapchat is banned in China. Tencent also owns a piece of the chat app Discord even though, you guessed it, Discord is blocked in China. If Tencent does kick in $150 million on a nearly $3 billion valuation for Reddit, as TechCrunch reports, it will be interesting if we ever find out exactly what it means. What kind of influence and position, if any, will Tencent gain at Reddit? Neither company responded to Gizmodo’s questions.
Read more of this story at Slashdot.