Google unit is investing $ 550 million in a Chinese e-commerce retailer
a measure that will deepen its ties with China and strengthen its position in online shopping.
The partnership will help both companies expand their retail presence in Southeast Asia, USA. UU And Europe, working together in retail and infrastructure systems to help traditional merchants, becomes digital.
According to the agreement announced Monday, Google bought about 27 million new JD shares traded on Nasdaq at $ 40.58 each, a price based on the weighted average trading price in the last 10 days. The agreement will place Google's participation in JD at approximately 1%, according to a spokesperson for JD.
JD will start selling products on Google Shopping, helping it reach consumers in the US UU And Europe, as it seeks to diversify beyond China's competitive e-commerce market.
The agreement will help Google expand its online retail business and could boost advertising revenue, which has been threatened by
Recently, companies are changing ads more and more to the online shopping company.
JD investment occurs when Google seeks to strengthen its connections in China. Its search engine has been blocked here since 2010, when the company refused to censor the content. However, it still maintains a considerable presence in the country, with three offices that employ locally more than 600 employees, the majority dedicated to the sale of advertisements and engineering.
In the last two years, the company based in Mountain View, California, has tried to improve relations and expand its presence in China. Main executives, including the executive director
He made two trips in the last seven months, met lawmakers and industry academics at two high profile conferences organized by the Chinese.
In December, Google launched an artificial intelligence lab in Beijing to take advantage of the growing market for AI talent. More recently, he introduced the Files Go application in China, an application for storing digital files for consumers in emerging markets.
JD based in Beijing, which has Walmart Inc. and
among its shareholders, it has struggled to gain market share from the industry leader
Alibaba Group Holding
in China's online shopping market.
JD had about 25% of China's retail market share from business to consumer in the first quarter of 2018, behind the Tmall platform of Alibaba, which had a 60% stake, according to the industry analyst Analysys. JD's market share was lower than a year ago, when the company had almost 27% of the market, according to Analysys data.
Write to Liza Lin at Liza.Lin@wsj.com