Tencent Holdings, China's leading provider of Internet and mobile and value-added telecommunications services will be making a long-term strategic investment of $300 million in Russia's Digital Sky Technologies (DST).

This strategic investment by China's Tencent Holdings in DST gives it a back-door entry to two US companies, social networking giant Facebook and the world's largest social game developer Zynga Game Network Inc (Zinga).

The deal also comes at a time when media had speculated early this month that Facebook was preparing to enter China.

Guangdong-based Tencent, which runs one of the largest web portals in China, QQ.com will invest $300 million and get a 10.26 per cent economic interest in DST.

The deal will also give Tencent approximately 0.51 per cent of the total voting power of DST as well as a seat on the company board.

Early this month, DST and Tencent as well as Russia's ProfMedia had submitted bids for acquiring AOL's instant-messaging service ICQ, which is valued at $300 million according to industry observers.

Moscow-based Internet-investment group, Digital Sky Technologies, majority owned by Russian billionaire Alisher Usmanov had acquired around $200 million worth of Facebook stock in May 2009 and followed it up by acquiring an additional stock worth $100 million in July, in a deal that valued the fast-growing s social networking site at $6.5 billion. (See: Digital Sky's stock purchase values Facebook at $6.5 billion)

In December, DST had invested $180 million in San Francisco-based Zynga Game Network Inc, the world's largest social game developer. (See: Russia's Digital Sky to lead $180 million investment in Zynga)

DST, which has offices in Moscow and London, is a leading global investor in proven internet business models including social networking, e-payment, online shopping, social gaming etc. Its companies hold top positions in CIS states including Russia, Ukraine, Kazakhstan, Georgia and Armenia.

Alisher Usmanov holds a 35-per cent stake in the venture while its founders Milner and Grigory Finger own over 40 per cent.
Tencent has three main streams of revenues - internet value-added services, mobile and value-added telecommunications services, and online advertising.

Tencent runs various online platforms, including Instant Messaging QQ, web portal QQ.com, QQ Game portal, multi-media social networking service Qzone and wireless portal.