Alibaba on 9 February 2015 decided to invest 590 million US dollar in Meizu Technology Co. With the deal, the Chinese e-commerce giant Alibaba Group Holding Limited is expanding into the smartphone business.
Alibaba and Meizu issued a joint announcement and said that they would form a long-term strategic cooperative partnership.
Alibaba will provide support to Meizu on e-commerce, mobile Internet, data analysis and payment service, while Meizu would offer its experience in smartphone operating systems, market strategy and off-line sales. Alibaba and Meizu began talks on the tie-up in October 2014.
Instead of investing in a company such as Xiaomi Corp., Alibaba chose Meizu, China’s 13th-largest smartphone maker in the fourth quarter of 2014. Meizu sold more than 1.5 million handsets in January 2015.
Alibaba’s investment in Meizu Technology Corp. gives the e-commerce giant a key tool in its push to unlock more money from China’s half a billion smartphone users.
When: 9 February 2015