Boston, MA 08/27/2014 (wallstreetpr) – According to reports, Baidu Inc (ADR)(NASDAQ:BIDU) has decided to join hands together with internet giants Tencent Holdings Ltd and Dalian Wanda Group for an e-commerce joint venture. The $813 million worth of a joint venture will be launched by Dalian Wanda Group with the help of BIDU and Tencent Holdings Ltd. The information was made public by the sources close to this matter.
Breakup of joint venture:
As per the information made public by the company 70% stake of the joint venture will be held by Wanda, while Baidu Inc (ADR)(NASDAQ:BIDU) and Tencent Holdings Ltd will hold 15% stake each. The official announcement and further details about this joint venture are set to be announced in a couple of day’s time. Baidu Inc (ADR)(NASDAQ:BIDU) and other two companies are placed among the top three non-state companies of China.
If taken into consideration the market condition of China over the past few years, one can easily understand the fact that the local market conditions are ideal for the e-commerce industry. With the growing popularity of smartphone market and laptops in the recent years, the future scope of the e-commerce industry is very good. Wanda is a well-known commercial property, film conglomerate and luxury hotel of China. It is controlled by Wang Jianlin; the wealthiest billionaire of China with a net-worth of $16 billion according to the data published in Forbes. It bought US-cinema operator AMC Entertainment Holdings Inc two years back in 2012. Currently, it runs around 83 departmental stores throughout China.
When it comes to Tencent, it is a Shenzhen-based video game and social media mammoth. It is the biggest listed internet firm of China with a market capitalization of $156 billion. Baidu Inc (ADR)(NASDAQ:BIDU) is a dominant search engine provider of China. When reporters tried to get in touch with any spokesperson of Wanda, no one came ahead for any comment.