Alibaba is teaming up with FoxConn in order to invest in two major companies, enhancing the relations and also monetizing.
There have been some headlines making rounds regarding the Chinese e-commerce giant, Alibaba enhancing the monetization plans. The founder of the e-commerce company, Jack Ma is busy doing one of the things he is best at, forging partnerships and also making new deals. Any of the deals is not a big when it comes to investment, however both of them are providing the insight on the sort of partners that Ma is interested in for Alibaba, New York-listed, and also a separate Ant Financial unit which he is affiliated with.
Latest Alibaba news reports that the first of the two deals is Japanese in its sense and is investing along with Foxconn, from Taiwan, in the robot-creating venture which is backed by Softbank of Japan; it has been the backer for Alibaba quite some time. This might come as a silly investment to people, at least through the pictures in which, Ma and chairmen of Softbank are along with Foxconn, standing behind the robot which is rather quirky named Pepper. However, Terry Gou from Foxconn, Masayoshi Son from Softbank and Jack Ma are considered to be the top tech names of Asia which points out that this tie-up should be taken a little seriously.
The second deal is surrounding the Ant Financial and also has the number of huge domestic funds from China that is giving the valuation of $45 billion to the company. It is yet far below the worth that listed Chinese e-commerce giant has that is of $215 billion but can possibly make Ant the 4th most valuable company pertaining to Internet after the big 3 giants, Alibaba, Tencent and Baidu respectively.
Alibaba news reports that the robot deal suggests that Alibaba and Foxconn have announced the investment of 14.5 billion yen in SBRH for the 20 percent share in it. SBRH is Son’s brainchild which is manufacturing playful yet practical robots named Pepper. The rest of 60 percent is going to remain in the venture that is all set to release the consumer-oriented robots’ first batch this month in Japan.
The investment might appear small as for Alibaba since the company has bought stakes worth billions of dollars however the relationship which has been there for quite some time between Softbank and Chinese e-commerce giant could be the driving force of the tie-up.
However, the most interesting part is to see the name of Foxconn with Alibaba in co-investment twice this week. Earlier, it was reported that the pair has been teaming up to invest together in Snapdeal, approximately the investment would be of $500 million.
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