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    Tencent to take 15% stake in JD.com

    By MENG JING (chinadaily.com.cn) Updated: 2014-03-10 10:25

    Tencent Holdings Ltd, China's largest Internet company, announced on Monday that it is going to take a 15 percent stake in the country's leading online retailer JD.com, forming a strategic partnership to offer e-commerce services to Internet and mobile Internet users.

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    Tencent to take 15% stake in JD.com
    The partnership will allow JD.com to access the rapidly increasing number of mobile Internet users through Tencent's dominating mobile messaging app WeChat, which has about 600 million users.

    And Tencent, which has been trying to strengthen its e-commerce business, is expected to boost its online shopping business through JD.com, the second-largest e-commerce player in China.

    The partnership between Tencent and JD.com is seen as a major threat to Alibaba Group Holding Ltd, China's dominant player in e-commerce.

    Under the deal, Shenzhen-based Tencent and the Beijing-based JD.com are expected to combine their online shopping platforms.

    JD.com, the second-largest e-commerce company, by market share, will acquire the less popular online shopping platforms - wanggou.com, paipai.com and yixun.com - from Tencent.

    In addition, Tencent will take an extra 5 percent stake in JD.com, when the company launches its initial public offering in the US. JD.com filed for a US listing at the end of January.

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