Alibaba is making its presence felt in US market, the company has recently bought shares for Zulily as well.
Latest Alibaba news is regarding the shares in e-commerce giant-backed Beijing Enlight Media which is an entertainment business, the company saw rise in their shares for the third day, yesterday on plans of the investment firm’s decision to increase the stake.
The entertainment company unveiled that Shanghai Enlight, its parent company has bought 678,500 shares which is the 0.06% stake. In next 12 months, the parent company plans to add almost 11.3 million shares in this company which is Shenzhan-listed. As of last week, Shanghai Enlight Investment Holding owns half of Beijing Enlight.
The 95 percent of Shanghai Enlight is owned by Wang and is ranked at number 801 on the Forbes Billionaires List of 2015 and has a fortune which is worth of $2.3 billion.
The shares from Enlight have gain 60% and climbed 1.7 % yesterday. The Alibaba Group which is Chinese e-commerce giant has paid almost $384 million for the 8.8 percentage stake as of March. Lately, the Chinese e-commerce giant has been showing great interest in entertainment industry and investing.
Apart from that, the Chinese e-commerce giant is not only increasing shares in prospective companies but recently bought a share for Zulily. The online retailer’s shares have jumped yesterday since the e-commerce giant begins marking its presence in U.S by buying shares of Zulily. Alibaba news reports that the online retailer has the products for the mothers and has daily deals. The US based online retailer closed 5.2 percent more at the Nasdaq Stock with $13.98. However, Alibaba fell to $86.72 at 0.4 percent on the NYSE.
Alibaba who operates Taobao which is most popular retailer in China has incremented the stake in US based online retailer to more than 9 percent. This can bring both the companies together on board in order to discuss further ventures that can be possible for consumers in US and China. The company expressed that Class A shares of Zulily had been bought by the company which was 4.8 million in total. This had cost the company around $56 million.
The target market that Zulily caters is for mothers, the company is based in Seattle and an array of toys, and clothing and other household products are being sold daily on the online retailer website. It also includes the daily deals that it offers which attract customers. The growth had slowed for the company lately but the fiscal quarter report that the company reported to fell 14.7% as of for the previous year. Taobao is approximated to hold major market of China, which is almost 90% of it.
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