![]() The deal is not so much an acquisition as it is a partnership. Suning is the biggest shareholder with a 19% stake, though it’s unlikely Alibaba’s stake would be considerably smaller than that. In March, Alibaba, Tencent and a handful of other Chinese names created a ride-hailing consortium. It explained “This investment is a step forward in our pursuit of the goal of 24-hour-delivery anywhere in China and 72 hours globally.” Accomplishing those goals would certainly be positive for Alibaba’s business and BABA stock. The statement from Alibaba was more direct. A statement from STO following the major investment conceded, “STO will further explore co-operations in areas of logistic technology, parcel delivery end and new retail logistics after the deal is closed.” ![]() The deal is really all about the logistics of handling the sale and delivery of billions of packages. Perhaps borrowing a play from ’s (NASDAQ: AMZN) play book, Alibaba is looking to be more of a master of its own destiny by acquiring a $693 million, 14% stake in China’s parcel delivery outfit, STO Express. ![]() For the past few years, BABA has been looking for ways to bring an AR experience to online-shopping.īABA’s acquisition of its long-established partner, Infinity, may be a sign that the company likes what it sees and wants to gain control of the technology before it can be shared with a rival. But, now that they’re here, the market has responded with a collective “meh.”īABA may have a very specific goal in mind, however, for Infinity, and that goal could excite the owners of Alibaba stock. Augmented reality and its close cousin, virtual reality, were lauded as game-changers before the technology became widely available. That’s enough clout for Alibaba to push a few buttons of its own.Įxperts believe BABA s helled out more than $10 million to buy Israel-based augmented reality startup Infinity Augmented Reality. Nevertheless, the $171 million convertible loan Alibaba is making could be turned into roughly a 4% stake in the company’s total equity. In fact, Tencent appears to be wielding a fair amount of influence on the shape Qutoutiao is taking. Qutoutiao translates into “fun headlines,” which, as many might guess, correctly characterizes the company as a news-and-video-aggregation platform.Īlibaba isn’t buying Qutoutiao outright, and rival Tencent is still a major shareholder of the start-up, which only went public in September. Huawei, Xiaomi and McDonald’s (NYSE: MCD) are among Teambition’s early customers. The acquisition gives Alibaba another weapon in its mission of fully penetrating China’s enterprise-tech market. It would be of little interest to individual consumers, but companies with employees who need to be able to access or edit the same documents will appreciate what Teambition brings to the table. Teambition is, in simplest terms, a collaboration app. Late last month, Alibaba acquired Teambition, whose early investors included Microsoft (NASDAQ: MSFT) and Tencent Holdings (OTCMKTS: TCEHY). The company’s most recent deal may not be its most exciting one of late, but it is curious given the target company’s earliest financial backers. Here’s a rundown of BABA’s transactions and the potential impact they may have on the value of Alibaba stock. Indeed, it’s likely that even most owners of BABA stock aren’t aware of all the deals the e-commerce company has made.īut investors who do keep close tabs on the company’s transactions know that, since early March, Alibaba has made more deals and bigger deals than it usually does in the space of several weeks. Acquisitions are often a relatively easy and effective way of bolting on a new capability.
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