02 May, 2017 Alibaba Group and Momo Inc. Shares Soar After Alibaba Unloads Its Stake in the Company
Alibaba and Momo shares were trading high in the green on Monday after Alibaba sold the remaining stake it had in the Chinese mobile-based social networking platform. The two stocks rallied after investors learned that Alibaba netted a cool $1 billion from the sale.
MOMO INC. shares closed up 3.82% on Monday after it was revealed that Alibaba had unloaded its stake in the company for a big profit. Shares of MOMO has soared over 139% in the last year. The mobile-based social networking platform was once an acquisition target for Alibaba back in 2015. Alibaba had joined with Sequoia Capital China and Matrix Partners China, as well as other investing partners, to acquire the company. A China Money Network report has reported that Alibaba had invested roughly $25 million in Momo during 2012 and 2013. It had a stake of 20.7% when Momo Inc. went public but the stake dwindled to 5.78% last month. With Momo Inc. shares skyrocketing over the last year over 139%, Alibaba had been quietly selling according to the China Money Network report.
ALIBABA GROUP HOLDING LTD saw shares climb higher yesterday to close up +1.04%. The Chinese e-commerce company made headlines for cashing in on a huge $1 billion profit after it unloaded its remaining stake in Momo Inc. According to a regulatory filing last year in March, Alibaba had a 20.2% stake in Momo. This number was down to a little under 5.78% more recently. A report from China Money Network at the end of last month said that Alibaba’s sale likely netted the company about $1 billion. China Money Network stated, “Chinese e-commerce giant Alibaba Group has netted at least $1 billion in proceeds by selling most of its shares of location-based social networking mobile app firm Momo Inc.” The network calculated that Alibaba’s profits from the sale are more than $1 billion. Investors are now anxiously waiting for Alibaba to report its financial earnings for the quarter and fiscal year ended March 31st, 2017. The company is scheduled to report on May 18th.