July 20, 2011
Though 2011 is not a good year for Chinese concept stock, the Internet giants like Alibaba, Tencent and Baidu are still willing to enlarge their investment plan.
In addition to entering the e-commerce business, Tencent has implemented a strategic investment (445m RMB) in the well-known film and entertainment group Huayi Brothers Media. In June, Baidu invested 306m RMB in Qunaer.com and entered the online tourism. And then, meituan.com has just completed its series B financing round of US$50M, and Alibaba Group invested in this round.
Looking into the future
The three Internet giants’ large investment has shocked many people. For people outside the industry, it seems like a competition. While for people inside, it is just their strategic investment for this year and further movements are coming soon.
The three companies have not commented on the discussion. Alibaba’s chief public relation officer, Ran Tao, said the company’s investment has close connection with their main business.
Analysts believe that the three giants are trying to create a platform large enough for more users. Their main investing idea is similar: the more the users, the more the revenue.