The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
SHANGHAI, China — China's e-commerce giant Alibaba Group Holding Ltd's will use proceeds from its potential IPO to fund acquisitions, media reported on Wednesday, as the firm looks to broaden its mobile services.
The group will not include most of its financial businesses, such as the Alipay online payment platform and its micro-loan services, in the potential IPO, Chief Executive Officer Jonathan Lu was quoted as saying in the China Daily.
Alibaba has not officially announced that it will hold an IPO, but people familiar with the matter say the company has intensified its meetings with investment banks over the past few weeks.
The issue is expected to value Alibaba at $60-$100 billion, and could raise $15 billion, making it one of the world's biggest internet IPOs and a much sought-after prize for bankers and stock exchanges.
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Lu, who succeeded founder Jack Ma in May, said the timing of Alibaba's listing would depend on whether he had a good acquisition target.
Alibaba paid $294 million to buy a 28 percent stake in Chinese digital mapping company AutoNavi in May. It also invested $586 million to buy an 18 percent stake in Sina Corp's Weibo business.
Most of Alibaba's revenue comes from its e-commerce platforms such as Taobao and only its profitable businesses will be sold in the IPO, the paper said.
The group posted a 171.1 percent jump in net profit in the fourth quarter as its revenue rose 84 percent to $642.2 million, according to a regulatory filing by major shareholder Yahoo Inc.
Alibaba last year split Taobao into three units: Taobao Mall, Taobao Marketplace and eTao. The first two units had total transaction value of about 1 trillion yuan ($163.15 billion) last year.
($1 = 6.1295 Chinese yuan)
By: Fayen Wong and Ruby Lian; Editing by Stephen Coates
Copyright (2013) Thomson Reuters
The algorithms TikTok relies on for its operations are deemed core to ByteDance overall operations, which would make a sale of the app with algorithms highly unlikely.
The app, owned by TikTok parent company ByteDance, has been promising to help emerging US labels get started selling in China at the same time that TikTok stares down a ban by the US for its ties to China.
Zero10 offers digital solutions through AR mirrors, leveraged in-store and in window displays, to brands like Tommy Hilfiger and Coach. Co-founder and CEO George Yashin discusses the latest advancements in AR and how fashion companies can leverage the technology to boost consumer experiences via retail touchpoints and brand experiences.
Four years ago, when the Trump administration threatened to ban TikTok in the US, its Chinese parent company ByteDance Ltd. worked out a preliminary deal to sell the short video app’s business. Not this time.