Tencent Takes 15% Stake In JD To Strengthen Position Against Alibaba

Tencent Takes 15% Stake In JD To Strengthen Position Against Alibaba

TechCrunch

Tencent , one of China’s largest Internet services companies and the maker of WeChat, and JD.com , an online direct sales company, have formed a strategic partnership. As part of the deal, which can potentially boost Tencent’s competitive position against rival Alibaba Group , which dominates China’s fast-growing e-commerce market. As part of the deal, Tencent has agreed to take a 15% stake in JD, worth about $215 million, and also subscribe at its IPO price for an additional 5% when JD goes public.

Its partnership with JD.com is the latest in several steps that Tencent has taken to boost its e-commerce and mobile strategies as rival Alibaba prepares for a highly anticipated IPO. In the last two months, Tencent has launched a new mobile open platform initiative to attract developers and invested $195 million in logistics firm China South City, and released a major new upgrade to WeChat

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