Alibaba Acquires Minority Stake In ShopRunner For $75 Million

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Alibaba has spent $75 million to buy a minority stake in two-day shipping service ShopRunner, according to The Wall Street Journal.  ShopRunner is headed by former Yahoo! CEO Scott Thompson.  ShopRunner is known for offering two-day shipping for e-commerce purchases from their partners at a cost of $79 per year.  ShopRunner partners include Toys-R-Us, Drugstore.com, and MacMall.

Alibaba has made a couple of large deals recently.  The company invested $586 million for Sina Weibo and $294 million for a 28% stake in AutoNavi.  Alibaba and their Taobao division are larger than Amazon and eBay combined in terms of gross merchandise volume.

Amazon.com has a service for their own website that offers the same service that ShopRunner does.  The Amazon Prime service costs around $79 per year.

Alibaba is preparing to go public and it is likely that a lot of the cash that they raise from that will go towards building a U.S. presence.

[Source: WSJ/TNW]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

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