China-based Alibaba Group Holding is in discussion with home grown mobile manufacturer Micromax to acquire a share of 20 per cent in the company. This will further allow the e-commerce heavyweight to expand its empire in India and bring its services closer to the country’s consumers.
If the deal goes as planned, Alibaba would be investing a massive $1.2 billion that will value Micromax at $5-$6 billion.
The mobile manufacturer which is currently the second-largest smartphone brand in India by sales, is also in talks with investors like SoftBank Corp to sell a stake of roughly 20 per cent. This will reportedly raise an amount of $1 billion. However, reports say that this deal is currently facing a hurdle due to differences in valuation expectations.
On the other hand, Alibaba has been in the news for its recent changes in leadership. CEO Jonathan Lu will step down to be replaced by COO Daniel Zhang. The tenure will be effective from May 10th. Lu will continue to be in the board as Vice Chairman.
“I am grateful to Jonathan Lu for his excellent leadership and management over the past several years, and I look forward to his continued contribution as a key leader in helping Alibaba Group train and develop the next generation of leaders,” said Executive Chairman Jack Ma.
Following the announcement of the new CEO, Alibaba’s shares increased by 7.5%.