The biggest Chinese Internet company has been sold to a US company for $1.1 billion.

The Shanghai-listed e-commerce giant Tencent is valued at $2.6 billion.

Tencent will buy the China-based firm, which is now called Baidu, for $8.7 billion.

It was set to become the largest IPO in the world and is the second largest Chinese Internet firm after Alibaba Group.

Ten cent’s stock price has risen nearly 15 per cent in the past year and the firm was valued at around $1,100 per share on Monday.

It is one of the biggest Chinese internet companies to have come out of the market in years.

Ten was one of a group of firms to raise capital after a series of acquisitions.

It has raised around $3.6bn since 2010 and is valued around $15 billion.

Last year, Ten was the second-biggest Chinese internet company to go public after Alibaba.

It had around $2 billion in revenue and around 5.4 million users.