Tencent Holdings Ltd (HKG:0700) and Expedia, Inc. (NASDAQ:EXPE) have invested $125.6 million into online Chinese travel service website eLong.com. Tencent put in $84.4 million for a 16% stake and Expedia put in $41.2 million to increase their stake to 56%.

Groupon has launched in China under the name Gaopeng.com. The website will initially cover Beijing and Shanghai. Tencent Holdings and Yunfeng Capital are investors in Gaopeng. Yunfeng Capital is a private equity fund started by Alibaba.com Chairman Jack Ma. Some of Gaopeng.com’s competitors include Lashou.com and Meituan.com. [Bloomberg]

Digital Sky Technologies (DST) is an investment company that is known for investing in social networking companies such as Zynga and Facebook. Chinese Internet company Tencent has invested $300 million in DST for 10.26% ownership in the company. Tencent will also get 0.51% voting power in DST.

Digital Sky Technologies owns 1.9% of Facebook through a $200 million investment. DST invested $180 million in Zynga. DST raised about $1 billion in funding themselves through 2009. DST and Tencent are both rumored to be making bids in AOL’s ICQ messenger service. [paidContent]

Riot Games is a social game development company that is best known for creating the League of Legends.  Earlier this week Riot Games announced that they have raised about $8 million in Series B.  The investors include Benchmark Capital, FirstMark Capital, and Tencent Holdings.  Rather than making revenue from advertising, Tencent and Riot games depend on the sales of virtual goods.

Riot Games is currently developing an online game platform which is what the funding will go towards.  Considering that Tencent is one of the largest virtual good dealers in China, they may even lend their expertise to Riot Games.  The company is licensing the League of Legends in China and will launch in the country by 2010.

Tencent is the parent company of Internet portal QQ.com.  They sell virtual goods through their portal, IM software, social networks, and games.  These virtual goods include pets, clothing, wallpapers, etc.  Tencent made about $700 million last year according to BusinessInsider.