Published On: Wed, Jul 6th, 2016

Alibaba snaps adult Chinese Android app store Wandoujia

Alibaba has modernized a strech on mobile after it acquired one of China’s many distinguished Android app stores, Wandoujia, in an undisclosed acquisition.

The understanding was announced in Chinese only, and media in a nation pegged it during around $200 million. (Alibaba declined to criticism on that cost when we asked.) That’s a significant amount, for sure, though it is nothing compared to the $1.9 billion that Baidu split with to acquire 91 Wireless, China’s tip Android app store, 3 years ago. Nonetheless, this purchase is critical for another reason: a arise and tumble of valuations.

Wandoujia was reportedly valued during some-more than $1 billion in January 2014 when it landed a $120 million appropriation turn led by SoftBank, however increasing foe from carrier-run app stores and rivals like 91 Wireless and Qihoo 360, not to mention reports of inner conflict, seem to have impacted a growth over a past dual years.

Currently, Wandoujia comes in as China’s fifth largest app store, according to information from Analysys International, with around 6 percent marketshare. The startup was founded in 2009 by former Google China-er Junyu Wang and telecoms engineer Jack Feng, and it claimed 300 million users during a time of that SoftBank investment. Beyond apps, Wandoujia also offers mobile calm and search products.

Independent app stores have flourished in China interjection to a blockage of Google services. While a U.S. company’s hunt engine is maybe a many famous Google product not accessible in China, a Play Store is another vicious Google post that is blank from a country, a world’s largest mobile market. Without a core Play Store, eccentric app stores took a place and have been hugely critical points of hit for any general developer or startup wanting to get into China.

Now, Wandoujia will be done partial of Alibaba’s mobile division, that includes browser-maker UC Web, that a association acquired dual years ago.

It’s transparent because Alibaba wants Wandoujia: an app store creates a useful addition to a existent ecosystem of mobile businesses and services. Beyond a e-commerce services — that are predominantly brand-focused TMall and Taobao marketplace, and sister payments use Alipay — Alibaba owns UC Web, China’s tip video use Youku Tudou, and analytics use Umeng and more. Wandoujia has a intensity to be a major distribution height and channel by that it can rivet and correlate with Chinese consumers.

As is a box with Youku Tudou, that Alibaba bought for $3.5 billion, the association is wakeful that opposite kinds of media — such as entertainment, video and apps — can clear blurb opportunities for its e-commerce business.

Featured Image: aaron tam/Getty Images

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