Alibaba Signs Mobile Browser Developer in One of the Biggest Merger Yet
Alibaba will be absorbing the mobile browser developer UCWeb as the e-commerce giant continues to go on a deal binge before getting listed. The absorbing of the mobile developer is said to be the biggest one yet. Alibaba continues to step up their acquisitions that will expand the company beyond their traditional online shopping business a few steps ahead of their planned U.S. listing that is said to raise around US$ 15 billion placing it in par with Facebook’s IPO in 2012.
The acquisition marks the third deal by Alibaba for this week, recently the announced an agreement with Shanghai Media Group in developing an entertainment platform and paid US$ 192 million to gain a 50 percent stake in China’s top soccer club Guangzhou Evergrande. UCWeb will be fully integrated with Alibaba Group and the integration will be the biggest merger in the internet history.
According to UCWeb chief executive Yu Yongfu, Alibaba will be taking one third stake in the company that they do not own and this deal will value UCWeb at more than US$1.9 billion. Alibaba will be sealing the deal through a transaction of combined cash and stock swap.
Established in 2004, UCWeb is a mobile internet software and service provider based in Guanghou that has 500 milllion active users worldwide.