I’m curious to see how ebay will react to this…another Japan or 40 thieves?
Yahoo last month invested $1 billion in China’s largest E-commerce company, Alibaba.com, and said it would integrate its Chinese operations into the online auctioneer. The investment, which is expected to be completed in the fourth quarter pending customary closing conditions, gives Yahoo a 40% share of the company and 35% voting rights. The companies say by joining forces, they will create one of the largest Internet companies in China and the only one with positions in key growth sectors, such as business-to-business E-commerce, consumer E-commerce, on-line payments, communications, and search.
Alibaba currently has 15 million customers, which included 100,000 businesses that pay between $250 and $10,000 per year for Alibaba’s online services.
According to the companies, business-to-business and consumer E-commerce in China are forecast to have compound annual growth rates of 95% and 83%, respectively, from 2004 to 2007.
By Patricia Brown. From Optimize, September 2005.
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