Quick Take: Alibaba Sells More Momo Stock
E-commerce giant Alibaba Group Holding Ltd. disclosed this week that it is continuing to sell down its stake in social networking app Momo Inc., in the slow unwinding of a long-term tie-up between the pair. Alibaba now holds about 20.2% of Momo, often likened to the U.S. hookup app Tinder, according to a filing to the U.S. Securities and Exchange Commission posted on the company’s website this week.
Alibaba held 27% of Momo shares in August, dropping to 23.2% in November, as the e-commerce company slowly sold down its stake, according to earlier filings. An Alibaba spokeswoman pointed out the company began investing in Momo in 2012, and has “supported its growth from a startup to a public company.”
“Momo has been a great investment for Alibaba and we will continue to be a supportive shareholder,” she said.
Alibaba first bought 20% of Momo in 2012. Momo then made an IPO in late 2014, only to launch a privatization bid backed by Alibaba six months later. But then it abruptly scrapped the privatization bid last year as the company’s fortunes began to take off with growing popularity of live broadcasting services that have become a recent favorite among Chinese internet users.
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