Follow

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use
Account
Techi.com Techi.com

Tencent to acquire a 15% stake in JD.com to take on Alibaba

Tencent, one of China’s largest Internet services companies and the maker of WeChat, and JD.com have formed a strategic partnership. The deal can potentially boost Tencent’s competitive position against rival Alibaba Group, which dominates China’s fast-growing e-commerce market. Though it’s much smaller than Alibaba Group, JD.com is China’s second-largest e-commerce company, and made a total of $16.5 billion in sales last year. 

Tencent Holdings Ltd. (700)Asia’s largest Internet company, agreed to buy a 15 percent stake in Chinese e-commerce website JD.com Inc. to build a stronger competitor to Alibaba Group Holding Ltd. Tencent will pay $214.7 million in cash and transfer its e-commerce businesses QQ Wanggou and Paipai and a minority stake in Yixun to JD.com, according to a filing today. Tencent also agreed to buy a further stake representing 5 percent of the company after it completes an initial public offering, it said. The deal will combine JD.com’s established market selling everything from electronics to fashion with Tencent’s less-popular e-commerce platform and provide a bigger challenger to Alibaba, China’s biggest operator. For JD.com, which is planning a U.S. IPO, the 272 million active users on Tencent’s WeChat message service could boost traffic to its online store.

 

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use