On June 18th, Google announced a 500 million USD cash injection into JD.com, China's second largest e-commerce platform. In return, Google will receive 27 million shares of JD.com's new Class A common stock at a price of 20.29 dollars per share, which is equivalent to 40.58 dollars per American Depository Share.
Google will place 550 million dollars on Jingdong
Apart from the investment partnership, the two giant companies have a series of strategic partnerships, one of which is to work together to develop retail solutions in various regions around the world, including Southeast Asia, America and Europe. In order to provide the consumers with a better shopping experience, both parties will explore building up the retail infrastructure solutions of the next generation. Meanwhile, JD.com will pick up a number of high-quality products, and sell them in multiple places around the world through Google Shopping.
For JD.com, the partnership shows its desire for globalization and new technologies. For Google, it alleviates its anxiety regarding e-commerce.
Source: Tencent Technology