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Google invests $ 550 million in Chinese online retailer

Google will invest $ 550 million in the Chinese competitor Amazon

It became known about the partnership of Google and the Chinese company JD, which works in the field of Internet trading. The name may seem unfamiliar, but in the home market it is second only to Alibaba in its industry.

Under the terms of the contract, Google will financially support the company for $ 550 million. Also, the search giant will help with its developments in a number of technologies. The trading platform, in turn, thanks to Google’s help, will be able to strengthen its positions in the markets of Europe and the USA.

It is reported that Google plans to strengthen its presence in the Asian market, and investing in JD will help in this. At the same time, it is clarified that new activities of Google in China are not planned yet: now the company’s servers are blocked due to refusal to work in accordance with local laws.

This step will allow Google to deepen ties with China and strengthen its position in online trading, notes The Wall Street Journal. Cooperation will help both companies expand their retail presence in Southeast Asia, the US and Europe.

Internet retailer and their mascot.
Internet retailer and their mascot.

As part of the agreement, Google will buy American Depositary Receipts (ADR) for $ 40.58 each, which is a weighted average in terms of trading volume over the past ten days. According to the results of the additional issue, the American company will receive about 1% stake in the Internet retailer, a representative of said.

According to the research firm Analysys Ltd., in the first quarter, accounted for about a quarter of China’s e-commerce market in the B2C segment. The first position with 60% here is the Tmall platform owned by Alibaba. However, a year ago the share of was higher and amounted to almost 27%.

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