Google to invest $550 million in China’s e-commerce giant JD.com
In return to its investment, Google will reportedly receive more than 27 million newly issued JD.com Class A ordinary shares at an issue price of $20.29 per share
Tech giant Google will invest $550 million in China's second-largest e-commerce player JD.com. The strategic partnership is being seen as Google’s effort to expand its presence in the fast growing Asian market.
In return of its investment, Google will receive more than 27 million newly issued JD.com Class A ordinary shares at an issue price of $20.29 per share, according to media reports.
The two companies reportedly described the investment as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service.
According to media reports, the companies said they would work together to develop retail infrastructure that can better personalize the shopping experience and reduce friction in a number of markets, including Southeast Asia.
Officials from JD.com, however, reportedly said that the agreement initially would not involve any major new Google initiatives in China, where the company’s main services are blocked over its refusal to censor search results in line with local laws.
Meanwhile, in a blog post, Google President of Asia-Pacific Karim Temsamani said, “We want to accelerate how retail ecosystems deliver consumer experiences that are helpful, personalized and offer high quality service in a range of countries around the world, including in Southeast Asia. By applying JD.com’s supply chain and logistics expertise and our technology strengths, we’re going to explore new ways retailers can make shopping effortless for their consumers, giving them the power to shop wherever and however they want.”
“As part of our partnership, JD.com will also join Google Shopping and bring a selection of their high-quality products to consumers in multiple regions around the world,” Temsamani added.
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