Seeking Alpha

Alibaba buying AutoNavi for $21/share

  • Two months after Alibaba (ABABA) offered to buy the 72% of AutoNavi (AMAP +2.5%) it didn't own for $21/share, AutoNavi has agreed to a deal.
  • The acquisition price values AutoNavi at $1.5B. Alibaba has reached a voting agreement with AutoNavi investors owning 26.2% of its shares.
  • The deal gives Alibaba full control of one of China's top online/mobile mapping providers ahead of its IPO, and further intensifies its rivalry with Baidu and Tencent, each of whom have their own popular mapping platforms.
  • AutoNavi had 92M monthly active users for its mobile mapping apps at the end of Q4, +88% Y/Y.
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Comments (1)
  • Pete P.
    , contributor
    Comments (798) | Send Message
     
    Ali is going to be a major player over the long term. I think Yahoo is going to really benefit from Ali's growth and strategy.
    11 Apr 2014, 10:53 AM Reply Like
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