Rumor: Suning to Acquire Redbaby
Netease Tech, 8/29/12
Gong Wenxiang, an e-commerce industry veteran, revealed on August 28 that employees from Chinese consumer electronics and home appliances retailer Suning's (002024.SZ) B2C site Suning.com have been in talks to acquire B2C e-commerce site Redbaby for the past month. According to Gong, talks between the two companies have progressed to the assessment and due-diligence stage, with negotiation of a final purchase price being the sole remaining stage prior to an acquisition. A number of senior Redbaby executives, including former VP Duan Dong, have reportedly left the company. The phone number of Redbaby's Beijing headquarters remained busy throughout multiple attempts to call.
Suning president Jin Ming responded cautiously when asked about a deal. "Suning is indeed considering acquisitions of vertical sites," Jin said, "but we have no definite acquisition goals at the moment. Redbaby may be in talks with investment banks, but Suning does not have any specific acquisition targets currently."
Editor's Note: For more background on this topic, please see "Redbaby Secures USD 20 Mln 4th-Round Funding" MD 7/20/12 issue.
Keywords: Gong Wenxiang Jin Ming e-commerce Redbaby Internet B2C Suning 002024.SZ Duan Dong M&A Suning Yigou
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