In brief: Reddit said to be raising a Tencent-led round at nearly $3b valuation

Reddit is raising US$150 million to US$300 million to keep the front page of the internet running, multiple sources tell TechCrunch. The forthcoming series D round is said to be led by Chinese tech giant Tencent at a US$2.7 billion pre-money valuation. Depending on how much follow-on cash Reddit drums up from Silicon Valley investors and beyond, its post-money valuation could reach an epic US$3 billion.

Source: TechCrunch

The San Francisco-based online community and link-sharing site boasts 330 million monthly active users who frequent its 150,000 subreddits. It’s said to be one of the five most-trafficked US websites.

Despite those stellar numbers, the company is still growing its diminutive ad business, and Tencent’s backing will give it more time to do that.

While Reddit isn’t accessible in China, the deal will help Tencent diversify further away from online games, which provide bulk of its revenue. The tech titan has taken a beating from China’s intensified crackdown on gaming addiction, losing billions in market value last year.