Ali crazy merger burning $ 8 billion, where did the money come from?
-Alibaba, evergrande, Ali-IT news Ali crazy merger burning $ 8 billion, where did the money come from?

Again with huge investments in Alibaba attracts industry attention. Only this time to invest in Alibaba is neither familiar Internet companies, nor the strongly expanding Alibaba's financial sector, but a football club.

On June 5, the Alibaba Chairman Jack Ma and Xu jiayin, head of evergrande football club announced that Ali will pay 1.2 billion yuan to evergrande and holds 50% equity evergrande Football Club.

"Since January of this year I started jerking him, there are many happy, won't you come in, you don't know the joy of football", Xu jiayin Jack Ma said he had been persuaded into soccer fields. Ma also said that "investing in football is to invest in happiness."

However, according to the person familiar with Jack Ma said it made the investment in Alibaba hengda Club is definitely not Jack Ma likes soccer so simple, to a certain extent, it is also a nice, for its business expansion in the financial sector such as PayPal looking for secure borders.

Of course, as the world's first sport, Murach, aierkesen and Daimante etc evergrande football team's star player already I heard growing up in the ears of fans in China, they can bring influence, have been confined to the home.

Evergrande's combination of aid and foreign aid success star, also happens to be the Alibaba B2B business line for the overseas market, Taobao cat a nice endorsement for the domestic market. For Alibaba seeks listing, certainly added a lot of exposure.

Alternative cattle on Tencent technology CFO Yang Jiahong said football can be seen as a corporate advertising costs, caused by free publicity is worth, not like advertising spend will be gone. Alibaba, the $ 200 million in deals worth billions of dollars, they are just small cases.

In addition to the investment of evergrande Football Club, Alibaba and the surrounding companies over the last 2 years have been crazy investments, including Sina weibo, Tudou, youku Gould, UC and other Internet companies have entered the Alibaba group.

Especially from March to April this year, Alibaba's movements more wild, culture, INtime holdings, Hang Seng China electronics, wasu had with Internet has much less business, through capital and more closely linked with Alibaba.

Just last night, Ali towards the investment pace still at warp speed. INtime's Chairman revealed INtime, INtime business platform Ali set up a joint venture company, INtime injected INtime network resources, and Ali will invest 1 billion yuan.

Tencent technology according to incomplete statistics, Ali system the past 2 years have been spent through investments and mergers and acquisitions has funded over $ 8 billion, has been hailed as not only got half of the Internet, was to buy up the world. A curious issue is around the acquisition and Ali, of Alibaba ecological series of group and what links between? Ali acquisitions where these funds come from?

Alibaba to invest where the funds come from?

Both strategic stake in Sina weibo, Tudou, youku outperform a fully owned Gould is now a football club, it can be said that this year Alibaba is big, then, Alibaba, where does the money come from?

Tencent technology learned that as early as in April 2013, purchasing Sina at $ 586 million ahead of Ali, Alibaba has access to 9 banks a total of $ 8 billion in credit. Chinese private enterprises in recent years obtained the largest credit from foreign banks.

These nine banks are providing loans Australia-New Zealand Bank, Switzerland-Credit group, Citigroup, Deutsche Bank, DBS, HSBC Holdings plc, JPMorgan Chase company, Morgan Stanley, and Mizuho Corporate Bank.

Ali group financing consists of three parts, a $ 2.5 billion three-year loan, a sum of us $ 4 billion of five-year loan and a US $ 1.5 billion, three-year revolving credit facility.

According to people familiar with the situation say, Alibaba's $ 8 billion credit for credit, credit conditions easing, did not use any real collateral. Usually, this credit facility are based on the syndicated loan taken by the credit strength of the enterprise credit schemes.

The period of validity of the agreement, as long as the amount does not exceed the maximum amount of enterprises, banks are required to meet the requirements of enterprises borrowing at any time, and can be used at any time in limit extraction, could also return in advance.

In 2012, the company had applied for a loan of us $ 4 billion, including $ 2 billion from China Development Bank three-year and four-year loan, from international creditors $ 2 billion in three-year and four-year loan.

However, Alibaba has $ 4 billion in the $ 12 billion in credit is owned by Alibaba Group's privatization of shares in listed companies, to buy back Yahoo refinance loans of this magnitude, real part of the investment is $ 8 billion.

If investment in Alibaba is entirely out of the $ 8 billion merger, gained credit also means that Alibaba is running short. However, according to Tencent technology understanding, Alibaba also has a large portion of its own funds.

? BAT financial statement

It is reported that Alibaba's profit last year soared, from 2012 to 3.558 billion, US $ 1.49 billion dollars. 2013 fourth quarter, Alibaba group net profit reached 1.36 billion dollars, more than Baidu and Tencent net profit during the same period the integrated.

Alibaba's revenues increased mainly rely on Taobao and cat, cat earnings come in two forms, one being through train, turnover in the other is through trading fees, trading fees cat booster Alibaba rapid revenue growth, my cat is a treasure tool.

Said one operators Tencent technology, Taobao import lots of free flow into the cat, cat trading fees usually between 3% to 5%, or even higher, as long as the cat platforms GMV (gross turnover) growing cat revenues will rise, too.

Number of acquisitions by private funds in the name comes from Ali

▲ Alibaba from 2013 investment or merger and acquisition cases to date (not counting scale is less than US $ 100 million deal)

Alibaba in the course of investment or acquisition of assets have a very noticeable feature, that is, on behalf of the Alibaba group, it's not always.

In April this year, wasu increased media plans, non-public offering of 286.671 million shares to invest in Yunxi, raised total 6.536 billion yuan. Yunxi investment general partner is and Yun Huang Yuzhu investments, limited partners, as Xie Shihuang, de facto control of anthropogenic Shi Yuzhu and Ma.

As a radio and TV company, wasu future growth of the media empire, potential, business TV, interactive TV, Internet television, cable networks, such as IPTV, fixed with qianwanji users. At that time, analysts said, could have a better combination of Humayun Ali control of vast Internet resources, Lenovo's emerging hot living room Internet, uncapped in the future.

However, MA investment wasu media mergers and acquisitions group of subjects is not Ali, but made more complex arrangement, as in the March 27, 2014, April 2, Yun Huang and Yunxi investment specialist set up two companies to complete the buy-and-hold 20% shares in China: media, while Xie Shihuang is Ma best friend, and is one of Alibaba's 18 founders.

The key question is, wasu funds in the financing of the media are not from Yunxi investment itself, but Ali Corp cat Technologies Ltd of Zhejiang Tian cat Technologies Ltd to invest in Yunxi lent more than 6 billion loan, a term of 10 years, compound annual rate of 8%. That makes money for Ali looks Chinese media only interest income related to the number of the group, but at your own risk.

Ma Hang Seng e-acquisition or through the Ali group, Zhejiang rongxin Ma Yun and Xie Shihuang control. Alibaba's acquisition of tianhong Fund likewise, real acquisition is Alipay, the parent company of tianhong Fund holdings.

However, from the perspective of nature and revolved around Alibaba ecological series of mergers and acquisitions itself, most of the money coming from the Alibaba group, not from individuals such as Ma or Xie Shihuang, most of these mergers and acquisitions is to pave to Alibaba group valuations.

Alibaba Express also left behind the wild merger and acquisition integration challenges, typical recent case was that Ali after the acquisition of Gould, Gould's accelerated transition to a mobile Internet, ecological migration of business to Alibaba, but Gould's own sharp drop in revenues and big losses, Gould's traditional customers are constantly away from high German, Ali was also pointed out that Gould's rival "killed" Gould.

Concluding remarks

Analysts pointed out that, after spending so much money after the merger, Ali is due to slow accelerating business integration with these companies, requires real synergy with each other, Ali group could not only be financial investors, acting as "money boy" roles.