Tencent and JD.com Invest $863 Million in This Retail Underdog
Chinese tech giants Tencent (NASDAQOTH: TCEHY) and JD.com (NASDAQ: JD) recently invested a combined $863 million in e-tailer Vipshop (NYSE: VIPS). It will cost Tencent $604 million to buy a 7% stake, while JD.com will put up the remaining $259 million to increase its existing stake from 2.5% to 5.5%.
Vipshop shares surged more than 40% after the announcement. Let's take a closer look at its business, why Tencent and JD.com invested in it, and what this could mean for e-commerce market leader Alibaba (NYSE: BABA).
Image source: Getty Images.
Source: Fool.com
