Alibaba invests in Chinas top soccer team
Published By : 06 Jun 2014 | Published By : QYRESEARCH
Alibaba Group Holding Limited has agreed to buy 50 percent stake in China’s Football Club (Guangzhou Evergrande).
This football club is one of the most popular one in China and won the Asia championship last year.
This deal was announced after Alibaba recently declared their deals in sectors such as entertainment, finance, and online drug data services. The organization stated that in March they would invest USD 692 million in Intime Retail Group Co., which operates a department store chain.
According to Jack Ma, the Chairman of Alibaba Group the reason behind the company investing in the football club is because Alibaba’s strategy focuses on health and happiness. Ma said that investing in the football club is like investing in happiness for them.
The E-commerce giant, Alibaba will invest USD 192 million (1.2 billion yuan) in Evergrande Real Estate Group Limited for a 50% claim on stake in Guangzhou Evergrande Football Club.
Shares of Evergrande increased largely within two months. This investment appears as China’s largest e-company readies itself for one of the largest initial public offering for this year.
Jack Ma joins the ranks of other tech executives who have invested in sports teams, such as former Microsoft chief executive Ballmer who earlier made a USD 2 billion deal to buy the LA Clippers. Another executive Mark Cuban invested in National Basketball Association’s Dallas Mavericks.
According to a spokesperson of Evergrande Group, the company is planning on seeking another 20 clients to invest in their football club.