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Business, Internet

Tencent Buys Stake To Better Fight Alibaba's

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Talks that were rumored last month to be in action have now been confirmed as Tencent has taken a 15% stake in Chinese upstart e-commerce firm for about USD215 million.

The investment puts both Tencent and in a better position to fight China's e-commerce leader Alibaba, and Alibaba's consumer trading site, which commands upwards of 85% of all e-commerce activity in China depending on whose statistics one trusts.

Tencent Holdings Limited will buy 351,678,637 ordinary shares, representing 15% of the outstanding ordinary shares on a Pre-IPO basis immediately after the completion of the pre-IPO subscription., also known as Jindong, plans its initial public offering in the U.S. very soon.

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