Alibaba is going to buy out stocks to get more cash for upgrading
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IBUonline is a B2B foreign trade platform, which has watched e-business industry news closely.
Alibaba is a listed company in HK.
During the past few years, it has recruited many unverified China suppliers and international buyers and posted some untrue buying or selling information on the website.
Either side of buyers or sellers may have suffered losses from such unverified information.
Now Alibaba has planned to upgrade the system and start a new system to guarantee buyers or sellers’ interest and rights.
The company said the continuing investment in upgrading business model and higher membership standards for suppliers have negatively impacted the financial performance.
Alibaba privatization scheme can help the company get more cash on hand to do more for website promotion and upgrade.
Meanwhile, Alibaba.com expects revenue growth to be challenging in the near term because of efforts to upgrade its operations.
In February, Ma said the privatization would allow shareholders to realize their investment now at an attractive cash premium, rather than waiting indefinitely during this period of transition.
IBUonline is also a B2B website, which is planning to go public.
IBUonline has the similar credit problem in B2B e-business operation, but it has upgraded the system to verify all the information, including buy offer and sell offer information posted on the website.
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