Google, which has long been at war with Amazon for the control of e-commerce, wants to explore the South East Asian market
Google will invest $ 550 million in cash in JD.com, the largest Chinese retailer, as part of a strategic partnership. Through this operation, companies hope to explore retail opportunities in Southeast Asia, the United States and Europe. Some products will also be made available on Google Shopping, according to an announcement published on the day of the huge sale of JD.
Although Google has seen the Chinese market blocked, the partnership recognizes the technical capabilities of the US technology giant, who hope to enter into synergy with the logistics of JD.
Philipp Schindler (CEO of Google): “We want to guarantee useful and personalized shopping experiences”
Google Chief Business Officer Philipp Schindler said in a quote: “We are excited to partner with JD.com and explore new solutions for retail ecosystems around the world to enable helpful, personalized and frictionless shopping experiences that give consumers the power to shop wherever and however they want”.
“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said JD.com’s Chief Strategy Officer Jianwen Liao.
Google, as part of the agreement, will receive 27.1 million shares at $ 20.29 each
Google has long competed with Amazon for e-commerce traffic and will receive more than 27.1 million newly issued JD.com Class A ordinary shares at a price of $ 20.29 per share. This is the equivalent of $ 40.58 per US deposit (ADS), based on the volume weighted average trading price on the previous 10 trading days.
JD.com listed American stock shares in its group-level company on the Nasdaq in 2014, making it a Nasdaq100 company. Prior to this announcement, however, JD’s largest investors were Tencent (20%) and Walmart (10%).
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