Chinese e-commerce giant Alibaba Group is selling its US subsidiary, 11 Main, to online marketplace OpenSky in a stock-swap deal, the Wall Street Journal reported.
In exchange for transferring 11 Main to OpenSky, Alibaba will get 37.6 percent stake in the New York-based firm, according to the report.
11 Main’s management will be integrated into OpenSky, Alibaba was quoted as saying, without disclosing the value of the deal.
The sale of 11 Main, whose website was launched in June 2014, comes as the US subsidiary has struggled to gain attention and support from Alibaba headquarters in China, sources told the Journal.
Alibaba, which went public in the US in September in a US$25 billion initial public offering, generates the vast majority of its revenue from its Taobao and Tmall online marketplaces in China.
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