Google  pays $550m for JD.com

JD.com a Chinese second largest e-commerce group is bought by Google for $550m, a deal for a less than 1 per cent stake is the latest step in a China Strategy whose core search engine has been effectively blocked in China since 2010.

JD.com initially will offer its merchandise over Google’s shopping site before branching into new markets beyond China.

Richard Liu, JD.com founder and CEO said he wanted to generate half of its profits from outside China within the next decade.

Google of course benefits from JD.com’s vast logistics and warehouse network.

Earlier this year Google signed a long-term pact to cross-license patents with Tencent, the Chinese technology group on a wide range of products and technologies as it opens its third office in China, in the southern city of Shenzhen, headquarters of Tencent and Huawei.

Google becomes JD.com’s second major US investor, with a 11 stake from Walmart and Tencent owns 20 per cent.

 

Philipp Schindler Google’s CEO said “the duo would explore new solutions for retail ecosystems around the world to  give consumers the power to shop wherever and however they want”.