Skip to content

Will Alibaba devour Facebook? China's massive Alibaba is coming to conquer the United States

By Catholic Online (NEWS CONSORTIUM)
4/16/2014 (3 years ago)
Catholic Online (www.catholic.org)

Gigantic e-commerce site has more revenue than Amazon and eBay - combined

Ali Baba for those in the west usually means the storybook leader of a gang of fearless, 40 thieves. But this will soon change. A massive e-commerce site from China, Alibaba, with revenue larger than Amazon and eBay combined has decided to go public in the United States.

Yahoo's dominance has since dwindled as Alibaba has since grown into a global powerhouse.

Yahoo's dominance has since dwindled as Alibaba has since grown into a global powerhouse.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
4/16/2014 (3 years ago)

Published in Technology

Keywords: Alibaba, China, e-commerce, public offering


LOS ANGELES, CA (Catholic Online) - The announcement comes after long speculation that it would list in Hong Kong. Alibaba could raise up to $15 billion at an estimated valuation of up to $200 billion.

"We expect it to be the largest tech IPO ever, the largest IPO of the year, the largest Chinese IPO of the year," Max Wolff, chief economist and strategist at Citizen VC says. "It's a big number, probably a record-breaker by any metric."

Check out our fine selection of Bibles -- by going here!

The public offering comes as part of a wave of Chinese companies going public in the U.S. this year. Twitter-like platform Weibo is set to begin trading on the NASDAQ on Thursday and Alibaba rival JD.com filed for a $1.5-billion listing in January.

The announcement has brought ample investor interest that swirled around Facebook in 2012 and Twitter in 2013.

Often compared to eBay and PayPal, Alibaba's interests are far wider. Alibaba encompasses banking, maps, cloud computing, online music service and TV and film production. The company also has a stake in Weibo, the microblogging platform that is going public in the U.S. this week.

Founded in 1999 by a group of 18 people, Alibaba is led by Jack Ma, a former English teacher from Hangzhou, a city near Shanghai. Yahoo was an early investor and still owns about a quarter of the company; Japan's SoftBank has a substantial 37 percent share.

Yahoo reported its quarterly earnings this week, revealing that revenue at Alibaba surged 66 percent, to $3.06 billion, in the fourth quarter compared with a year earlier. Its net income more than doubled to $1.36 billion.

That makes Yahoo's 24 percent stake worth $42 billion. Which is more than Yahoo's own market capitalization, according to an estimate by private company financial intelligence provider PrivCo.

"Yahoo made a huge and, in retrospect, very smart investment in Alibaba when Alibaba was very small and Yahoo wasn't," Wolff said.

Yahoo's dominance has since dwindled as Alibaba has since grown into a global powerhouse.

Going public in the U.S. has become an attractive option for Chinese companies. Stock exchanges in mainland China are struggling and subject to restrictive controls, including a 10 percent daily limit on how much a stock can gain or lose after the first day of trading.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for JUNE 2017
National Leaders.
That national leaders may firmly commit themselves to ending the arms trade, which victimizes so many innocent people.


Comments


More Technology

Cyber-attack hitting USA right now, experts fear could turn deadly in the future Watch

Image of A cyber-attack started in Russia and has gone global.

There is a war going on right under your nose, but unless you work in shipping, finance, or energy production, you might not have noticed. ... continue reading


New social media algorithm can predict the future Watch

Image of A graphic showing various events and relations between them. Social media can be used to predict the future.

Social media can be used to predict the future. This conclusion has long been suspected, and now there is another study to confirm it. The ... continue reading


Can Catholic culture thrive on the internet and social media? Watch

Image of

Social media can be difficult to navigate, but Catholics can reach out with a content-savvy approach that can truly engage people, young ... continue reading


How close is NASA to announcing if aliens exist? VERY CLOSE. Here's why Watch

Image of The James Webb Space Telescope will be used in the hunt for life on other planets. It could provide us with answers before 2020.

A viral article claims the hacker collective Anonymous predicts NASA is going to announce the discovery of alien life soon. Anonymous is ... continue reading


Astronomers close in on Planet X that could be responsible for cataclysms on Earth Watch

Image of Is Planet X out there? And it is responsible for sending waves of Earth-smashing asteroids towards the Sun? Maybe.

NASA thinks there may be another planet far beyond Neptune, and it could pose a threat to life on Earth. Long known as Planet X, it has ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.