Google Invests $550 Million in JD.com

Google Invests $550 Million in JD.com

On June 18, Chinese e-commerce brand JD.com and US tech giant Google announced that Google will invest $550 million (approximately HK$4.31 billion) in cash in JD.com, forming a broad strategic partnership.

Google's $550 million cash investment in JD.com will be handled by Google's operations division, rather than by Alaphabet's investment arm. According to the agreement, Google will receive 27,106,948 newly issued Class A ordinary shares of JD.com at an offer price of $20.29 per share (approximately HK$159), equivalent to $40.58 per ADS (American Depositary Share) (approximately HK$318), based on the volume-weighted average price of the previous 10 trading days.

Furthermore, Google and JD.com will collaborate on a range of strategic projects, including developing retail solutions in multiple regions globally, including Southeast Asia, the United States, and Europe. Combining JD.com's expertise in supply chain and logistics with Google's technological advantages, the two companies will collaborate to explore next-generation retail infrastructure solutions to provide valuable, personalized, and seamless shopping experiences.

JD.com also plans to select a range of high-quality products for sale in multiple regions globally through Google Shopping.