Alibaba Group Holding Ltd (NYSE:BABA) has bought the Wandoujia app store.
Alibaba only announced the acquisition in Chinese and it didn’t reveal financial details of the deal. However, media report from the country claim that the company paid roughly $200 million for Wandoujia, which is much less than its 2014 value of $1 billion.
BABA’s acquisition of Wandoujia fits well with its portfolio of digital offerings. The app store is currently the fifth largest in China. The country has several independent app stores due to Alphabet Inc’s (NASDAQ:GOOG,NASDAQ:GOOGL) Google Play Store being banned there, reports Tech Crunch.
“It is still too early to say whether this deal can reshape the landscape of China’s app distribution market,” Zhu Daling, an Analysys International analyst, told China Daily. “But it seems Alibaba has made a good deal if it acquires the company at $200 million.”
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