|
RAPAPORT... Alibaba Group will sell its U.S.-based ecommerce platform 11 Main (11main.com) to rival OpenSky for an undisclosed sum and in exchange for a 37.6 percent stake in that online retailer, according to Xinhua news. The deal is expected to close in July. The staff of 11 main will join OpenSky, but operate independently for now, according to the report. TechCrunch news added that the deal also included Auctiva, Vendio and SingleFeed, fulfillment services that Alibaba acquired between 2010 and 2011.
Alibaba launched 11 Main in June 2014 to sell jewelry, watches, fashion accessories, and many other categories of goods in the U.S. market, but insiders told the Wall Street Journal that the ecommerce site failed to gain much attention with consumers.
Alibaba contended that OpenSky and 11 Main, together, would offer 50,000 brands and prove to be an ecommerce force that empowers small and medium businesses to grow their market share.
|