Alibaba Group Holding Ltd (NYSE:BABA) Plans To Purchase Stakes Of Baidu Inc (ADR) (NASDAQ:BIDU)

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The stock of Alibaba Group Holding Ltd (NYSE:BABA) closed at $194.25 gaining 0.03% in yesterday’s trading session. Alibaba is directing its focus in the provision of online food and local services and the move to buy out Baidu Inc (ADR) (NASDAQ:BIDU) has been praised by several market analysts who believe the company is on course to achieve its set goals.

The business guru has also expressed its intention to buy out more investors in Chinese startup Ele.me and that is according to revelations made by a person familiar with the latest developments. A sharp contrast does exist between the company and JD.Com Inc(ADR) (NASDAQ:JD) which since its establishment has been more inclined to building and running its own fleet of delivery people.

On the other hand, Alibaba trusts in the confinement of its capabilities to the significant number of its own third-party partners but the bottom-line is that each and every business has its own strategies to help it scale up operations and achieve immense business success.

An official working with the company opined, “Alibaba’s investments in so-called ‘new retail,’ such as brick-and-mortar stores and grocery chain Hema, also help shore up the network, by offering delivery points and warehousing for parcels. With its online traffic and Koubei business, the company could create a lot of synergy with this acquisition.”

A Shanghai-based analyst working with Pacific Epoch Steven Zhu while addressing several news reporters revealed that Alibaba was performing pretty well considering that at the moment it owned more inventory and delivery men. However, it is crucial to point out that much of the consumption to this point in time still takes place offline.

Moving ahead to make the new purchase implies that Alibaba will turn out to be the owners of the largest chunk of the Chinese online food delivery. Reports indicate that at some point the e-commerce was the owner of almost 23% of Ele.me and the target right now is to move ahead and purchase the stock from a number of investors, Baidu being one of them. This information was disclosed by one person who wanted his identity kept anonymous because the matter was private.

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