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  • flankenking flankenking Jul 11, 2013 11:10 AM Flag

    China's Alibaba on hunt for acquisitions after IPO

     

    China's e-commerce giant Alibaba Group Holding Ltd's will use proceeds from its potential IPO to fund acquisitions, media reported on Wednesday, as the firm looks to broaden its mobile services.

    The group will not include most of its financial businesses, such as the Alipay online payment platform and its micro-loan services, in the potential IPO, Chief Executive Officer Jonathan Lu was quoted as saying in the China Daily.

    Alibaba has not officially announced that it will hold an IPO, but people familiar with the matter say the company has intensified its meetings with investment banks over the past few weeks.

    The issue is expected to value Alibaba at $60-$100 billion, and could raise $15 billion, making it one of the world's biggest internet IPOs and a much sought-after prize for bankers and stock exchanges.

    Lu, who succeeded founder Jack Ma in May, said the timing of Alibaba's listing would depend on whether he had a good acquisition target

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    • Another asian company with big synergies is Rakuten - remember ssome years ago, where Raktuen boughz Linkshares for 420 million by revenues of Linkshare of only 30 million.

      • 1 Reply to flankenking
      • Japanese Internet shopping portal Rakuten is buying Internet Capital Group partner Linkshare Corporation for about $425 million in cash.

        Rakuten is very well known in Japan for its on-line shopping, travel, golf reservations, community and greeting cards sites. This will be the company’s largest acquisition to date.

        “We are extremely pleased that LinkShare has agreed to be acquired by Rakuten under the proposed terms,” said ICG chairman and CEO Walter Buckley.

        “Since we acquired a stake in LinkShare in 1998, we have strongly believed in LinkShare’s potential to be a market leader, the strength and vision of its management team and the value it delivers to merchants and affiliates, added Buckley. “We view this event as a great illustration of the ICG model, as it demonstrates the full cycle of owning, building and realizing the value of one of our Core partner companies.” AP provides a little background info on LinkShare:

        LinkShare runs a performance-based online advertising business called affiliate marketing service. LinkShare places client companies’ advertising on blogs and other Web sites managed by individuals, and the site creators can get compensation once the viewers of the sites buy advertised goods.

    • I believe, that Local Corp will be with only 0.39-times-reveneus and a P/E of 5.4 will be an excellent target for Alibaba.

 
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