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.
HONG KONG, China — Alibaba Holdings Inc is in talks with major shareholders to reclaim a stake in fast-growing online-payments affiliate Alipay, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The discussions revolve around several options, among which is the purchase by Alibaba of one-third of Alipay, the Journal said, citing one of the unidentified people.
Even if an agreement were to be reached, it would not be expected to take effect before Alibaba's expected U.S. initial public offering, and it would face regulatory review in China, according the people quoted in the report.
Alibaba, the world's biggest e-commerce company, was not available for comment outside normal business hours.
ADVERTISEMENT
The Chinese company is now preparing for what could be the largest tech company IPO in history, a U.S. offering that is not expected to include assets related to Alipay. But the prospect of the company reclaiming a slice of its former unit could boost sentiment around its debut.
Like eBay Inc's PayPal, Alipay plays a key role in processing payments across Alibaba's vast online network. It is estimated to handle half of China's online payments and was considered one of Alibaba's more valuable assets before it was spun out of the company in 2011.
That decision prompted objections from Yahoo Inc, which still owns 24 percent of Alibaba, and other investors who accused the Chinese company of surrendering a strategically important asset without prior notice. The companies eventually agreed to accept compensation for the asset.
Alibaba has said the spinoff decision was taken to comply with Chinese regulations governing third-party payments services. Alipay's holding company also offers access to about $87 billion of assets under management, and has interests in insurance and micro-finance.
By Aman Shah; Editors: Steve Orlofsky and Leslie Adler
Copyright (2014) Thomson Reuters. Click for restrictions
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.