E-commerce leader Alibaba has always been a very active headline grabber, but these days its penchant for making news is getting a bit out of control, reflecting an M&A strategy that also looks increasingly overcharged and lacking focus. One might compare Alibaba these days to a creature that has suddenly developed a huge appetite and is devouring everything in sight. That’s my assessment today based on the company’s involvement in 3 major headlines, one involving web browsers, another electric cars, and a third that’s actually related to its core e-commerce services.
The following press releases and media reports about Chinese companies were carried on June 12. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) Targets 100 Mln 4G Terminal Sales This Year – Chmn (Chinese article)
Anyone who thought that Chinese telcos behaved like commercial companies is getting a lesson in the country’s unique blend of capitalism, with news that all 3 state-run carriers have been ordered to slash their promotional spending. In any other market, such a move would carry huge anti-competitive overtones and the regulator would quickly step in and stop such coordinated action. But this isn’t any other market, and the order to slash spending is coming from the government organization that is effectively the major shareholder of China Mobile (HKEx: 941; NYSE: CHL), China Unicom (HKEx: 762; NYSE: CHU) and China Telecom. (HKEx: 728; NYS:E CHA) Read Full Post…
E-commerce leader Alibaba has long insisted on a shareholding structure that would put all decision making powers in its top managers, and now we’re getting a taste of what that could mean with word that the company will buy a stake in one of China’s best known soccer teams. On the surface at least, this deal doesn’t look very attractive. Most or all of China’s soccer clubs are losing money, and the league has a record for poor marketing and also a series of corruption scandals that have hurt its reputation. Any ordinary Alibaba shareholder would probably instantly veto such a purchase if he had that kind of voting power. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 6. To view a full article or story, click on the link next to the headline.
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China Probes Baidu, Youku Tudou (NYSE: YOKU) Over Violent Shows -Xinhua (English article)
The following press releases and media reports about Chinese companies were carried on June 5. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: 992), IBM Said to Seek Extension in U.S. Review of Deal (English article)
Trina Solar (NYSE: TSL) Announces Offering Of $150 Mln In Convertible Notes (PRNewswire)
Tencent (HKEx: 700) in Talks to Acquire Lottery Firm LotySynergy (HKEx: 1371) (English article)
As IPO Nears, Alibaba Preps Employees For $40 Bln Windfall (English article)
NQ Mobile (NYSE: NQ) Probe Turns Up No Problems After Short Seller Attack (Chinese article)
The following press releases and media reports about Chinese companies were carried on June 4. To view a full article or story, click on the link next to the headline.
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US Finds Unfair Subsidies Of Solar Imports From China (English article)
Alibaba Unveils “Lazy Man” VNO Mobile Service (Chinese article)
China’s fast-growing logistics sector got 2 shots in the arm last week, first when leading e-commerce company Alibaba made a major new offshore investment and then when a major foreign fund formed a domestic warehousing joint venture. The pair of investments are part of a flurry of new developments being driven by e-commerce, which is fueling huge demand for behind-the-scenes services like order fulfillment and product deliveries. Read Full Post…
E-commerce leader Alibaba is forming some interesting new tie-ups with major multinationals, including a new strategic partnership with Dutch electronics giant Philips (Amsterdam: PHG) and a pairing between its recently acquired AutoNavi (Nasdaq: AMAP) online mapping division and leading German automaker Volkswagen (Frankfurt: VOWG). I’ve previously said I’m not a big fan of Alibaba’s recent M&A binge, as it looks a bit lacking in focus and could lead to operational headaches as the company tries to integrate so many different businesses. But these latest non-acquisitive tie-ups with major global partners look like a smarter strategy for expanding its reach as it prepares for a multibillion-dollar New York IPO. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 30. To view a full article or story, click on the link next to the headline.
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E-commerce leader Alibaba is back in the headlines with its purchase of a stake in a Singaporean parcel delivery company, continuing its hyperactive acquisition spree that seems increasingly lacking in focus. Meantime, another e-commerce tie-up that I wrote about earlier this week has formally happened, with word that a new series of e-commerce channels run by JD.com (Nasdaq: JD) has begun to appear on one of the top screens for users of Tencent’s (HKEx: 700) popular WeChat mobile messaging service. Read Full Post…
