Two Internet Giants to Combine its E-Commerce Business
Tencent Holdings is in talks to combine their e-commerce business with its closest rival retailer JD.com. experts that are familiar on the matter said that both companies are now looking into the matter and are considering several options which includes giving Tencent a 6 percent stake in JD.com.
The 6 percent stake is in exchange for merging the lesser known online shopping operations with JD.com which is a more established platform. As of the moment JD.com is planning to initiate a U.S. public offering also by merging with Tencent could bring its 272 million active WeChat users will bring in more traffic to its online store. JD.com is backed by Yuri Milner a Russian billionaire who filed to raise in what analysts say the largest initial public offering of a Chinese Internet company in the US. JD is planning to announce the deal with Tencent just before the sale of its shares.
Although Tencent still has to make a comment in the merger a spokesperson said that it was not company policy to share comments on the market rumors. Tencent is also looking into building its e-commerce business to compete better with Alibaba by combining their messaging services with online shopping and online games as well.