Google to invest $550 million in China e-commerce giant JD.com

Google to invest $550 million in China e-commerce giant JD.com

The companies said the investment is a piece of a wider partnership, however, which includes the promotion of JD.com products on Google's shopping service.

The U.S. search giant is investing $550 million in cash into China's second-largest e-commerce player, JD.com, reports CNBC.

Google will receive 27.1 million newly issued JD.com Class A shares at a price of $20.29 per share, equivalent to $40.58 per ADS, the press release said.

Under the partnership, JD.com products will appear on Google's shopping service, giving JD.com access to consumers outside Asia, while Google can apply the Chinese e-commerce company's supply chain and logistics expertise to its technology. Google isn't planning on doing anything new in China as a result of the deal.

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The firms will marry JD's supply chain and logistics experience with Google technology to create "next generation" personalized retail in regions including Southeast Asia, the United States and Europe, the joint statement said.

This move is expected to help JD.com to expand beyond its base in China and Southeast Asia in order to establish a meaningful presence in US and European markets.

"The announcement isn't focused on China", JD.com spokesman Josh Gartner confirmed to AFP.

The partnership with Google will help JD.com launch a serious campaign to unseat Alibaba, China's largest e-commerce site and JD.com's biggest rival in Asian markets.

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