Alibaba Takes Stake In ChinaVision Komatsu Global (KMG)
Online, May 21, 2014 (Newswire.com) - Komatsu Global - KMG - The trend of China's biggest tech companies increasingly buying into each other's niches continued recently as e-commerce giant, Alibaba agreed to take a stake in ChinaVision, a Hong Kong-based TV and movie production company for a reported $804 million.
The deal will see Alibaba gain access to TV and movie content in its efforts to retain existing customers and attract new ones and comes hard on the heels of a recently announced launch of a mobile gaming platform.
"Things are definitely heating up in China," said an Komatsu Global researcher. "You have the likes of Tencent which owns the WeChat instant messaging and calling internet service, buying into online retailing via a stake in China's second largest online retailer, JD which many are seeing as the company exploiting Alibaba's weakness in mobile," he continued.
Tencent which has a holding in ChinaVision, will see its 8% stake diluted to 3% once the deal is concluded.
The deal comes against a backdrop of speculation that Alibaba will decide to take itself public through an initial public offering at some point this year.
"If an IPO was to be announced this year, it could very well be the largest tech sector IPO since Facebook's in 2012. Initial estimates suggest the company could be worth upwards of $50bn but we think those numbers are very conservative given the extent to which it is acquiring stakes in alternative business streams and effectively making sure it can cover every business sector," suggested the Komatsu Global (KMG) analyst.
--------------
Global-News-Now Ltd is a boutique public relations firm, with a wide array of experiences and a solid reputation. We strive to be your marketing communications partner, empowering you with a targeted communications campaign that is backed by a thorough understanding of your business. We believe in delivering measurable results that directly impact the bottom line and meet business goals.
Global-News-Now Ltd.'s award winning team has a proven track record of implementing the right tactics to meet your business needs. We pride ourselves in maintaining solid and long-term relationships with our clients and staff.