China’s Dalian Wanda group is joining forces with Tencent Holdings Ltd. and Baidu Inc. in a 5 billion yuan (US$814 million) e-commerce venture.
The new company, which will be registered in Hong Kong, will be 70 percent owned by privately held Wanda. Tencent and Baidu will hold 15 percent each, Reuters reported Friday.
China is the biggest e-commerce market in the world, with its No. 1 player, Alibaba Group Holding Ltd. doing more business than Amazon.com Inc. and eBay Inc. combined.
The deal is structured over three years, people familiar with the matter were quoted as saying.
By teaming up with Tencent and Baidu, Wanda will become the biggest online-to-offline e-commerce platform in the world, said Dong Ce, chief executive of the new venture.
Online-to-offline, or O2O, involves people using their smartphones to find and buy goods and services from physical stores.
Wanda, which bought United States cinema operator AMC Entertainment Holdings Inc. in 2012, is a commercial property, luxury hotel and film conglomerate controlled by Wang Jianlin, China’s man with a net worth of US$16 billion, according to Forbes.
– Contact us at [email protected]