Factors Contributing To Alibaba's Success

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Until Alibaba went public only few people in America beside the tech-knowing people and investors were familiar with this brand. This Chinese company is growing tremendously and is becoming a known brand all over the world as it is getting ready to launch an initial public offering that may become the largest in United States history. Alibaba’s Group Holding Ltd. was founded in 1999 by a confident, energetic tycoon Jack Ma, who is a little over fifty years old. Alibaba is a strong competitor to businesses like Amazon, eBay and PayPal, but it seems that it takes it to the next level and combines all elements into one. Alibaba’s website connects customers and sellers of industrial and commercial goods and services in China. Its Taobao related site is the …show more content…

Securities and Exchange Commission explain a little more on this topic about his motivations for going public. “We plan to use the net proceeds from this offering for general corporate purposes,” Alibaba said in a smooth language written in its F-1 registration document. Clues to Jack Ma’s intention for going public can be learned from his past statements, from sources that are close to the company itself, and by looking at Alibaba’s future opportunities and its current vulnerability. Alibaba launched an IPO to raise as much as $20 billion to $25 billion. Alibaba wanted its investor payback, because it paid more than $7 billion to buy back an equity stake it previously sold to Yahoo Inc., which will keep about 20 percent ownership after the IPO. International lenders, like Barclays, Citi and Credit Suisse, also invested in for about $1 billion. Asia-centric investors Boyu Capital, Temasek Holdings and CIC International among them have contributed the rest. The sources told International Business Times that Ma promised to reimburse his lenders by going public within a specific time period. “This is payback,” said a Chinese investor with experience of knowing much about the

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