Google invests $550 million in Chinese e-commerce company JD.com
Alphabet Inc.’s Google unit is investing $550 million in Chinese e-commerce retailer JD.com Inc., a move that will deepen its ties with China and strengthen its foothold in online shopping.
The partnership will help both companies expand their retailing presence in Southeast Asia, the U.S. and Europe, working jointly on retail and infrastructure systems to help brick-and-mortar merchants go digital.
Under the deal announced Monday, Google GOOG, +0.01% GOOGL, -0.07% bought about 27 million newly issued shares of Nasdaq-listed JD.com JD, -0.37% at $40.58 apiece, a pricing based on the volume-weighted average trading price over the last 10 days. The deal will put Google’s stake in JD.com at about 1%, according to a JD spokesperson.
JD will start selling products on Google Shopping, helping it reach consumers in the U.S. and Europe as it seeks to diversify beyond China’s highly competitive e-commerce market.
An expanded version of this report appears on WSJ.com.
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