Categories LATEST, Other Industries, Retail

Alibaba deepens offline presence by investing in Focus Media

Alibaba (BABA) is not happy with its dominance in China’s digital ad industry; it is now working to expand its offline presence too. The e-commerce giant is reportedly spending billions to own 6.62% stake in a digital signage firm Focus Media that reaches out to 200 million middle-class population.

Alibaba is expected to shell out around $1.43 billion to acquire the minority stake in the company that displays commercials in elevators and office lobbies.

The deal is apparently split into pieces as Alibaba would also invest $504.7 million to acquire a 10% stake in an entity that is controlled by Focus Media’s founder Jason Nanchun Jian. On the whole, Alibaba is making an investment of $2.23 billion, which will give it a total of 10.32% stake.

Related: Tencent, Alibaba among highest valued global brands

This latest move by the Amazon (AMZN) rival is part of its ‘new retail’ strategy to reduce the gap between online and offline channels. To develop its ‘new retail’ strategy, the company is increasing its investment in physical retail footprint as well as partnerships.

With this deal, Alibaba, which maintains a lead in online shopping sphere in its home market, hopes to strengthen its offline presence, as Focus Media has its presence across 300 Chinese cities.

Related: Alibaba continues to invest in Southeast Asia

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top