Chinese company Alibaba to buy AutoNavi for $1.6 bn

Chinese company Alibaba to buy AutoNavi for $1.6 bn

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China: Chinese ecommerce giant Alibaba Group is seeking to take full control of the successful mapping app AutoNavi, valuing the company at about $1.6 billion.

In an apparent bid to enhance its mobile services, Alibaba has offered to pay $21 per American depository share to acquire the remaining 72% stake in the NASDAQ-listed company. The company already has a 28% stake in AutoNavi.

The move for AutoNavi could bolster Alibaba’s efforts to build its mobile multiservice platform. AutoNavi has its own mapping app and has partnered with Chinese banks, universities and conglomerates, including China Telecom, China Unicom and Sany Group. The app could be used to display the locations of Alibaba’s vendors–restaurants, shops, theaters, etc–and help users conveniently make payments on the go.

Source: Forbes