Tencent has acquired a $400 million stake in Dianping, a Chinese equivalent of Yelp. The deal could be announced this week. The report claims that Tencent bought a 20-25% stake in Dianping at a valuation of between $1.8 billion to $2 billion. Baidu reportedly attempted to buyout Dianping for $2 billion last October.
Between 2005 and 2010, Dianping raised funding from investors like Sequoia Capital China and Google China. Dianping reportedly has no interest in a full acquisition because they are planning to IPO within the next five years. Dianping was founded in 2003 and is the largest ratings/reviews service in China.
Dianping is hitting around 90 million monthly active visitors. There are around 8 million merchants and 30 million ratings/reviews on their platform. Dianping recently launched a food delivery service and is in the process of building a hotel booking service.
Tags: Dianping, Tencent