58.com has announced that it has purchased a huge stake in Falcon View Technology Limited or “Ganji.” This is the holding company of the PRC entities known also as Ganji.com, a major online local services marketplace platform in China.
According to the definitive agreement with shareholders of Ganji (“the 58.com-Ganji Strategic Transaction”), and according to the intended long-term, strategic combination transaction, 58.com has agreed to purchase approximately 43.2% fully diluted equity stake in Ganji. This is a transaction that is a combination of share consideration and cash, along with more or less 34 million newly issued ordinary shares of the Company (one American Depositary Share, or “ADS”, represents two class A ordinary shares) and US$412.2 million in cash.
583com and Ganji will continue to operate their respective brands, websites and teams, which will improve business synergies from this new strategic relationship. The two successful companies will capitalize on opportunities which will help them further expand their businesses.
Ganji.com started in 2005 in Beijing, China and has become one of country’s leading online local services marketplaces. Hundreds of millions of users come to Ganji.com every month to access a wide range of location-based services that are offered by millions of active merchants specifically in areas such as jobs, housing, local services information and in purchasing second hand items. The 58.com-Ganji Strategic Transaction is expected to close within a few days, subject to customary closing conditions.
Mr. Michael Jinbo Yao, Chairman and CEO of 58.com, commented on the transaction, “We are pleased to make this large-scale strategic investment in Ganji.com to jointly realize major cost, revenue, and strategic business synergies. This transaction is part of our larger plan to execute our vision of integrating our respective businesses and creating a larger and more effective local services internet platform to help consumers around China find the services that they need in their local area. Ganji.com has done a tremendous job building a talented team, and we look forward to working more closely with them as we continue to expand in this growing and underserved market.”
Mr. Mark Haoyong Yang, Chairman and CEO of Ganji.com, added, “After extensive discussions, we are pleased to reach this strategic agreement with 58.com. Both Ganji and 58.com are leading players in the online classified market and have developed unique capabilities in O2O. Personally and on behalf of Ganji, I look forward to taking advantage of the great chemistry between Ganji and 58.com, and leveraging our respective resources and advantages. We have seen and continue to see the mobile internet enabling a transformative opportunity in the classified industry and across O2O categories. Ganji has been built on the DNA of mobile connectivity. Together with 58.com, we will continue to build a leading platform offering our customers the best experience and localized service.”
58.com operates the largest online marketplace serving local merchants and consumers in China, The Company’s online marketplace enables local merchants and consumers to connect, share information and conduct business. With a large and growing user base, merchant network and massive database of local information, 58.com has created a powerful network effect that enables it to maintain its leadership position.58.com’s online marketplace contains a vast amount of credible and up-to-date local information in approximately 380 cities, across diverse content categories, including housing, jobs, used goods, autos, pets, tickets, yellow pages and other local services. The Company conducts automatic and manual screening using proprietary technology and processes to ensure the relevance and accuracy of information provided on the online marketplace. The Company’s broad, in-depth and high quality local information, combined with easy-to-use website and mobile applications, has made it a trusted marketplace for consumers. 58.com stock market evolution: http://www.marketwatch.com/investing/stock/wuba
About Yao Jinbo
Yao Jinbo (Michael) graduated from university in 2000. He founded EachNic.com. which later became the biggest domain trading website in China. EachNic.com was sold to NET.CN for several hundred thousand RMB. Yao was later appointed as the vice-president of marketing in NET.CN. He has won several awards: The Annual Internet Innovative and Influential Figure Award in 2009, Annual Internet Influential Figure of the New Forces Award in 2012 and the Annual Internet Innovation Leadership Award also in 2012.
Ganji is China’s leading online and mobile classified ads provider, focusing on local and business service ads. Top Ganji categories include house rental information, second goods and vehicles, job opportunities, event tickets and pet selling, training, social events and data, restaurants, etc.
About Haoyong Yang
Haoyong Yang is the founder and CEO of Ganji.com. He worked in Silicon Valley for various technology companies such as Juniper Networks and was also the co-founder of Triomphe Networks. Yang is the President and Chairman of Google China joint venture. He graduated from Yale University with a Master Degree in Computer Science and University of Science and Technology with a Master’s Degree in Engineering.