News this week: China’s largest
e-commerce company, the Alibaba Group, recorded a revenue growth of 60%
year-on-year, to US$1.73 billion in the second quarter of 2013. Net income in the
quarter was US$707 million, more
than double last year’s US$273 million.
Additionally,
Alibaba and its largest shareholder, Yahoo! Inc., have amended their agreement and have
agreed to reduce the number of shares Yahoo will sell when an eventual Alibaba
IPO takes place. According to the new agreement, Yahoo will sell 208 million of
its 523.6 million shares into the IPO or to Alibaba. The original agreement was
for Yahoo to sell 261.5 million shares.
Separately, Alibaba
has agreed to invest
US$200 million in ShopRunner, a U.S.-based online retailer. ShopRunner, established in 2010, offers
free two-day shipping on goods for an annual membership fee of US$79. The online
retailer is currently led by Yahoo’s
former CEO Scott Thompson, and competes with Amazon’s Prime membership program.
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