Alibaba purchases stake in digital marketing firm AdChina
Alibaba purchases stake in digital marketing firm AdChina

China based e-commerce giant Alibaba Group Holding recently announced that it has purchased a stake in online marketing company AdChina, says a Reuters report.

 This investment is aimed at supporting its advertising business. The company did not share its exact stake in AdChina. This internet marketing firm, has generated $51 million in sales in 2011, had filed for a $100 million initial public offering in Feb. 2012, and pulled the listing after an year.

After spending more than $6.2 billion on acquisitions in 2014, Alibaba had reached its record-setting $25 billion New York listing in the same year.

Besides, this investment is geared towards improving Alibaba's online and mobile advertising efforts through Alimama, the group's advertising arm. This unit sells marketing to merchants using Alibaba's e-commerce sites like online marketplace Taobao and online retail platform Tmall.com.

"Alibaba's strategic stake is expected to allow AdChina to enhance its competitive strengths in its existing businesses," said an Alibaba statement.

AdChina will also work with Aliyun, Alibaba's cloud computing business in the near future.

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading