China’s largest e-commerce player is exploring all possible ways to form solid foundation in the world’s largest economy. Alibaba.com recently bought 10 percent stake with the market value of $150 million in Zulily. The Seattle based e-commerce website deals with kids and women’s merchandise. The latest regulatory filing post by the start up informed about the development. The Alibaba also informed the press that it holds millions of shares in Zulily last week.
The Zulily announced its first quarter earnings recently and those figures triggered negative impact on the shares of the company. The share value has decreased by 43 percent this year. Chief Executive Officer Darrell Cavens from Zulily released a statement which says that they have great respect for Alibaba team and kind of work the company has been doing in China. It is an honor to have Alibaba’s support as a stakeholder in the company, said Cavens.
The Alibaba has very limited exposure to the financial scenario in the United States. But the company has advantage of its massive size and cash flows. Any big online shopping player in the US should expect tough competition by the Alibaba in the future. The Alibaba has record of offering world’s largest initial public offerings. The company attracted lot of media attention after it raised around $25 billion on the New York Stock Exchange. The company has been very cautious about the steps it has been taking in the United States. It has also invested in interior design firm 1stdibs.