Published: Tue, June 19, 2018
Markets | By Erika Turner

Google invests $550M in Chinese retailer JD.com

Google invests $550M in Chinese retailer JD.com

"This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world", JD.com's chief strategy officer Jianwen Liao said.

Under the deal announced Monday, Google bought about 27 million newly issued shares of Nasdaq-listed JD at $40.58 apiece, a pricing based on the volume-weighted average trading price over the last 10 days.

Google's search engine has been blocked in China since 2010 over its refusal to censor search results to comply with local laws.

Google has been increasing its presence in China in recent times, and today it has continued that push by agreeing to a strategic partnership with e-commerce firm JD.com which will see Google purchase $550 million of shares in the Chinese firm. But the deal will also allow Google to draw people away from Amazon when doing product searches online, boosting their advertising dollars. Google is increasing its investments across Asia, including a rumored deal to invest in the Indian e-commerce company Flipkart. Japan's SoftBank Group Corp, which is making big internet investments around the globe, is a major investor in Alibaba.

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JD is up 5.76% this year.

Trade war or not, Google and JD.com desperately want to gain traction in each other's markets.

The partnership will combine Google's technology and JD's logistics and supply chain to develop "next generation retail infrastructure solutions", and "personalised and frictionless" shopping experiences.

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