The rumor that Tencent and Dianping were in talks about acquisition or investment has swirled for a while. TechNode learned from multiple sources that Tencent has already acquired a stake in Dianping and will announce it as soon as early this week.

It is rumored that Tencent has bought 20%-25% a stake at a valuation of USD1.8 – 2 billion.(Update: It’s 20% as the two companies announces on Feb. 19. Price isn’t disclosed. )

Around last October it was rumored that Baidu wanted to to buy the whole Dianping for about USD2 billion. In 2011 the company was valued at about USD1 billion in a over USD100 million round of funding. Since 2005, Dianping has received multiple rounds of funding from investors including Sequoia Capital China and Google China.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com