Forced by the Chinese science and technology start ups combined trend will continue

[Abstract] over the past year, there have been several mergers and acquisitions in China’s technology industry, and the marriage of mogujie.com and beauty is only the latest case.

Tencent

technology news in January 12th, according to foreign media reports, along with the China economic slowdown and the stock market downturn, is changing its strategy Chinese start-ups, and before the business platform beautiful said the merger with mogujie.com is the latest example of this change.

in the Chinese market, the pursuit of start-ups and investors to further increase the competition, which means that only the leading enterprises can survive. Based on this situation, China’s start-ups have merged to ensure their future status.

, a social networking start-up, said mogujie.com agreed to merge with its rivals to form a new company. Mogujie.com CEO June said in an e-mail to employees, the new company will be completed after the merger of a new round of financing, valuation may be close to $3 billion.

beauty and mogujie.com have said that China’s Internet giant Tencent investment, the two companies are the main female fashion brand shopping platform, which sets shopping and social networking.

China Science and technology circles in recent years set off a new trend of mergers and acquisitions, and mogujie.com and the United States said the hand is a continuation of this trend. The volatility of China’s stock market and the uncertainty of the economic development make the risk investors unwilling to give the high valuation of start-ups. At present, China start-ups often burn the way through the competition with competitors.

as investors become more and more critical, founder of start-up companies face greater pressure, they have to consider to replace increasingly fierce competition through mergers and competition, and this competition will usually become brutal price war.

BAI (as mogujie.com investor, Bertelsmann Asia Investment Fund) director general manager Long Yu said: "obviously the winner and investors are looking for the market, more capital will be concentrated to a winner."

Long Yu said that the rational thinking behind the merger is to reduce competition, reduce costs and improve efficiency. When investors worried about the market down, the need for such measures is more prominent.

According to sources, the Beijing based beauty said it had been trying to get new financing in the past few months, but ended up fruitless. At the same time, headquartered in Hangzhou in November last year, mogujie.com received $200 million financing, valued at approximately $1 billion 700 million.

said the success of the financing did not make it more inclined to accept the merger transaction. According to sources, in this merger transaction, mogujie.com is worth two times the beautiful said.

the two companies have yet to disclose the financial details of the merger.

over the past year, there have been several mergers and acquisitions in China’s technology industry, mogujie.com and the United States and the United States is only the latest marriage case. Last October, >

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