Alibaba’s latest $1.1 billion acquisition of US-based ecommerce giant Amazon.com
ecommerce is about to get a much-needed infusion of capital to bolster its growing business.
Alibaba, the world’s largest online retailer, has already spent nearly $1 billion to acquire ecommerce platform ecommerce marketplace Amazon.
This latest round of investment, announced Tuesday by Alibaba Chief Executive Officer Terry Gou, is expected to go towards hiring a top talent pool of more than 500 people.
The acquisition comes as Alibaba is gearing up for its $4.8 billion merger with Japanese ecommerce company Rakuten.
The deal will give Alibaba a market share of around 1% of Amazon’s online sales in the US.
Alas, the move will be accompanied by more scrutiny from regulators and antitrust authorities, who are also concerned about the possible dilution of the Amazon deal by Alibaba.
Alibaba, however, says it’s not worried about any potential antitrust concerns.
In the past, Alibaba has defended its acquisition of ecommerce platforms as a necessary business measure.
It said that it wanted to “break into the lucrative market” of e-commerce.
“Alibaba is an important and unique online commerce platform that has long been an essential part of the global ecommerce market.
Alibaba’s acquisition of Amazon.
com is a strategic and strategic partnership that will benefit consumers and accelerate our growth and growth in the global marketplace,” Alibaba CEO Terry Gou told a news conference on Tuesday.
The announcement of the deal comes a month after the European Union approved a proposed antitrust probe against Amazon and other online retailers in a probe that the European Commission called “biased.”
The European Commission said it would probe whether Alibaba violated antitrust rules by taking over Amazon.
It cited “misleading” Amazon advertisements and “illegal” practices.
Earlier this year, Amazon said it will offer a free trial of its Prime program to shoppers, but the move was seen as a way to avoid an antitrust probe.
The European Union said it is also considering a possible probe against Alibaba and other e-tailers, which have come under scrutiny in recent months.
Last month, Alibaba’s chairman and CEO, Jack Ma, said that Amazon’s decision to close its online marketplace was a result of competition from other online sellers.
He said that Alibaba would launch a “major new ecommerce store” to compete with Amazon.
He also said that the company is looking to partner with Amazon in the future.
“We are looking to expand the marketplace to other countries,” he said at the time.