The great Alibaba is seriously considering an IPO as the next logical step for a company in this position. The e-commerce mammoth will be looking at launching an IPO within the next few years - although this could be moved forward quite briskly if the circumstances are favorable.
The biggest fear for Alibaba is that there is a nuclear war and the internet is cut off all over the world. Their second biggest fear is that they end up like a certain social media site who got a little too greedy.
If the IPO is too high, it will be boom and bust and before you know it shares will have dropped tremendously.
With the latest purchase of a stake in Sina Weibo, Alibaba does have very serious plans to become one of the leading tech companies in China and challenge such groups as Google and Facebook.
Increase projections are estimated to rise by 59% in the next year. Something that is unheard of in the West and gives an idea of where the company is heading.
Our faithful analysts have estimated Alibaba's wealth at the USD100 billion mark. Coincidentally, this is very close to what Facebook was valuated at just before its own IPO.
However, in order to play its cards right, some experts suggest Alibaba undervalue its selling price so as not finish like Facebook did not long after its initial IPO.
Some have hinted at a valuation close to the USD60 billion which is more conservative but runs the risk of under-selling what is the largest e-commerce platform in the world in the country with the most internet users.
If all goes well, this valuation for the IPO could be a sure fire way to not fall into the Facebook trap as investors will want a part of the e-commerce giant whatever happens.
The truth is that for now, nothing has been officially pronounced by the leaders of Alibaba. An IPO in the future has been mentioned but the speculation about it being in the next 18 months is in no way confirmed.
Needless to say, those in charge will not repeat the mistakes made by others in the past and will ensure that whatever move is made will the smartest one possible.
Qihoo CEO Zhou Hongyi has his sights set on the world lying the other side of the Chinese border. In tech talk that literally means the whole planet and then some. Despite these adventurous ideas, there is no certainty the company can survive and thrive in the international market.
Qihoo and the chinese image
What are the positives?
It may be time to begin a new section on this blog, it should be titled "Alibaba World Takeover." I feel a new tag being created.
Is Sina Weibo a good buy?
New forms of Social Commerce
The Beijing underground system is about to get much more with the times now that online payment system Alipay is testing out its new smartphone-as-ticket service in one of Beijing's most used lines. This system could revolutionize how we deal with money in this city and make Alibaba a true leader of the tech industry in China.
Beijing of the future
The new money?
The fast taxi startup from China is seriously putting itself out there to secure funding for its app. The 300 000 user strong service is operational in Shanghai and Hangzhou, hopes to expand to more cities in the near future.
What's the goss?
Big travel company in China, Qunar is struggling at the moment with its 3rd party merchants who are not happy about policy change.
The risks of the e-commerce format
Qunar needs to move forward
As we all now know, Alibaba runs the show when it comes to the internet in China. They are now contending with groups outside of its borders by advertising Alibaba's buying site in Hong Kong and Taiwan (so not too far outside of said borders as this merely represents Greater China).
They now have a new overseas site hk.ju.taobao.com which offers a limited number of daily deals to those crazy kids over in Hong Kong and Taiwan. For now, this new site will mainly offer deals in mother care, home ware, clothing and electronics. Offers in travel and lifestyle will happen in a couple of weeks time. Obviously, they can't get all the fun in one go.
What is interesting in all this is that Groupon is already present in Hong Kong and Taiwan where it has healthy business. Considering how this company has been faring lately, I would be quite worried if China e-commerce dragon was arriving on my shores (apologies for the all too easy reference to China as a dragon).
Who owns what?
Recent research has placed Taobao's Juhuasuan as dominating 47.8 percent of the group buying market, thus placing it way ahead of other companies offering the same type of deals.
Where taobao is also putting the ball in its court is when they offer their websites in traditional characters, directly interesting for residents of Taiwan and HK.
Furthermore, there is news that Alibaba is strongly hoping to expand its business throughout South East Asia. For that though, they will be forced to translate the websites into english as Chinese may only take them so far in this region of the world.
The future is Alibaba
In a bold move, Alibaba's Juhuasuan is promising its overseas customers to deliver items in less than 2 days. Now this is perfectly feasible within China thanks to discount kuaidi services but this may prove more difficult when longer distances and international borders are involved.
The global credit giant, MasterCard is hoping to develop closer ties with Chinese tech giant Alibaba, and more precisely their online payment service. Here is hoping they can push the development on mobile payment worldwide.
What's in store?
Who is gaining what?
Good news for all
This week's issue of The Economist has put Alibaba on its cover. This is most likely the first time its readers have heard of the company. The article set out the place Alibaba and China holds in the e-commerce world as well as some thoughts on the future of the company.
What does The Economist have to say about Alibaba?
The global future of the company
Risks for Alibaba?
Alibaba has very generously developed more ways for us to spend money we don't have, and accumulate debt. Three cheers for Alibaba!