Why vip com investment Le bee Sequoia bureau to do the investment to support the high valuation
and Lasafo on Valentine’s Day "marriage": vip.com officially announced its strategic stake in Oriental popular music bee net company 75% shares, the total amount of $112 million 500 thousand market rumors. This is the first time since the listing of vip.com M & a investment.
vip.com CEO Shen Ya said clothing shoes bags and cosmetics are the first and second categories of online shopping. Vip.com and strategic cooperation to achieve Le bee clothing and beauty industry complementary strategy, the two sides will strengthen in these two areas of market position, to achieve maximum customer share, will further be genuine advantage into competitive barriers, let consumers away from the troubled fake online shopping.
music network founder Li Jing said that this is a strategic investment, not an external guess bee network was sold or acquired. On the one hand, the two sites to further integrate resources, provide more quality choices for women’s fashion online shopping; on the other hand, has lefeng.com and vip.com two platform as a backup, Master star brand will get bigger and better development.
and Lasafo this marriage is not a simple "strong alliance", the conference place neither in LAFONT network is located in Beijing, nor vip.com is located in Guangzhou, but with the international background of Hongkong, the two sides did not invite too much media, informed sources said that this transaction is obviously not for public but a group of vip.com, interested in capital market investors.
vip.com by investing to support high valuation
why vip.com need such a merger? This is Ali, the two Jingdong listed imminent, is one of the best business Chinese market speculators, once the listing will be 1 billion 500 million dollars to billions of dollars in financing, will attract large investment funds. Its obvious effect is that a large part of the original sought after vip.com’s funds will be transferred to Jingdong and Ali shares.
currently, vip.com’s shares have more than $100, had the highest market value of nearly $6 billion 800 million, even if the decline on the market value of $6 billion, more than Sina, togetherness era, Ctrip Sohu, close to 3 times, up to 7 times more dangdang.
Tang Yizhi, vice president of vip.com
Tencent technology has said that vip.com can get a high valuation is mainly performance support, which includes 3 aspects, namely sales, profit margins and market share. From the data, vip.com grew rapidly over the past year.
earnings report, vip.com’s third quarter revenue of $383 million 700 thousand in 2013, an increase of 146.1%. Net profit of $12 million, a net loss of $1 million 500 thousand over the same period last year. Vip.com’s net profit rate of 3.1% over the same period last year net loss rate of 0.9%.
with the size of vip.com continues to grow and continue to be profitable, the concept of its losses can not be used again, and Jingdong also announced earnings, Dangdang also claimed to be profitable. Vip.com does not engage in mergers and acquisitions, it is difficult to have a sustained and stable growth in terms of size.