Alibaba values digital mapping company AutoNavi at USD 1.58 billion

Tuesday 11 February 2014 13:27 CET | News

Chinese e-commerce provider Alibaba has offered to buy AutoNavi in a deal valuing the Chinese digital mapping and navigation company at USD 1.58 billion.

Alibaba already owns 28% of AutoNavi. Revenues at AutoNavi have declined sharply over the past three quarters and Alibabas move is expected to protect its initial investment in the China-based company. Given Alibabas 28% stake, it is expected to pay between USD 1.13 and USD 1.17 billion for the remainder. As of Q3 2013, AutoNavi was the leading mobile map service by users, according to Analysys, with 31.3% of the market, followed by Baidu with 26.6%.

As of December, 81% of all internet users in China go online with mobile devices, according to the official China Internet Network and Information Center.

Alibaba is expected to go public later in 2014 in the largest IPO since Facebook debut in 2012, although the company has not chosen a location. Alibaba has been valued at around USD 140 billion, according to a Reuters poll of eight analysts.

Alibaba runs Taobao Marketplace, Chinas largest consumer-focused e-commerce website, business-to-business commerce platform and Alipay, a PayPal-like online payment platform.

In recent news, Alibaba has introduced a feature in its Alipay Wallet, the mobile e-wallet app that lets users hail taxis on Kuaidi Dache, the Hangzhou-based on-demand transportation app.

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Keywords: Alibaba, e-commerce, online payments platform, China, digital mapping, AutoNavi
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce