uploads/2018/06/google-76517_960_720.png

Google to Invest $550 Million in JD.com – JD.com Stock Up +5%

By

Updated

Alphabet Inc.’s (NASDAQ: GOOGL) Google subsidiary announced that it will be investing $550 million in Chinese e-commerce powerhouse JD.com (NYSE: JD) in exchange for 27,106,948 newly issued Class A shares at a price of $40.58 per ADS.

In the press release, the companies stated that they “plan to collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe,” and that they “aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and frictionless shopping experiences.” JD also stated that it “plans to make a selection of high-quality products available for sale through Google Shopping in multiple regions.”

JD.com’s stock has responded to the news by rising more than 5% in pre-market trading, while the stock of Google’s parent company, Alphabet, is down just over 0.5%.

 

 

Article continues below advertisement
Advertisement

More From Market Realist