Alibaba forms $160M JV with automaker to develop Web-connected cars
Mar 12 2015, 19:44 ET | About: Alibaba Group Holding Limited (BABA) | By: Eric Jhonsa, SA News Editor [Contact this editor with comments or a news tip]
Alibaba (NYSE:BABA) is forming a 50/50 JV with top Chinese automaker SAIC Motor to bring Web-connected cars to market. The companies are collectively investing RMB1B ($160M) in the JV, and hope to offer their first car in 2016.
Alibaba/SAIC suggest the JV will make use of Alibaba's Yun OS (presumably for the cars' infotainment systems), as well as its AliCloud cloud service platform. Chances are Alibaba's AutoNavi unit, a top player in the Chinese online/mobile mapping market, will also be leveraged.
The deal follows reports Alibaba is investing $200M in Snapchat at a $15B valuation.