GBS and Taobao Form E-Commerce JV
Sina Tech, 12/29/09
Chinese C2C and B2C e-commerce site Taobao and Hunan Satellite TV, a subsidiary of Hunan-based Golden Eagle Broadcasting System (GBS), have invested RMB 100 mln for the establishment of Kuaile Taobao ("Happy Taobao"), a cross-media JV. The company will develop a specially-made television program and establish a shopping channel on Taobao as well as on an independent external site. The company will also create shopping-related movies and television programs.
Taobao will create a sub-channel for Kuaile Taobao, and the external independent website will be operated by the JV. The JV will use the existing Taobao platform, and all of its transaction, payment, and logistics services will utilize existing Taobao transaction processes. The new platform's products will come from existing Taobao vendors, Hunan Satellite TV's partner brands, and merchandise related to Hunan Satellite TV's on-air personalities.
In addition, sources within Kuaile Taobao have revealed that in the future the company is considering developing a multi-terminal application that would work on televisions, computers, and mobile phones. Development of a Taobao television shopping product is also underway.
Taobao senior director Wang Yulei will take over as president of the JV. Neither Taobao nor Hunan Satellite TV have revealed the exact proportion of capital put forward by each side.
Editor's Note: Jonathan Lu, president of Taobao, said Hunan Satellite TV will hold a 51% stake in the new JV, while Taobao will hold the remaining 49%. Lu added that the JV may possibly aim to IPO. For more background on this topic, please see "Rumor: Taobao to Form JV with Golden Eagle" MD 12/08/09 issue.
Keywords: Kuaile Taobao Wang Yulei Jonathan Lu IPO e-commerce Taobao Internet television B2C C2C Hunan Satellite TV Golden Eagle Broadcasting System JV TV shopping channel
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