Tencent buys 15% stake in JD
Tencent is one of the largest Internet service companies in China and is known for developing an app called WeChat. Tencent and JD.com formed a strategic partnership through an investment. Tencent has acquired a 15% stake in JD.
JD.com is the second-largest e-commerce company in China (after Alibaba) and generated $16.5 billion in sales last year. JD.com used to be known as 360Buy.com.
Tencent agreed to subscribe at JD’s IPO price for an additional 5% when JD goes public. JD’s SEC filing is planning to raise up to $1.5 billion when it goes public. JD will acquire Tencent’s QQ Wanggou B2C and PaiPai C2C marketplace businesses and will buy a stake in Yixun as part of the deal.
Tencent will have the option to buy the remaining stake in Yixun in the future too. Tencent president Martin Lau will join JD’s board of directors as well.
“Through this strategic partnership with Tencent in key areas, such as mobile access points, traffic support, and e-commerce activities, we hope to enhance our ability to provide high quality and enjoyable shopping experience to a broader and growing user base while strenghtening our direct sales and marketplace businesses on mobile and Internet,” said Lau.