Baidu and JD.com invest more than $ 2 billion in the state telecommunications company, China Unicom
Baidu Inc and JD.com joining other major Chinese companies investing in the state telecommunications company China Unicom. According to a source who received the information from unnamed informants, China Unicom is the weakest of the three operators belonging to the state, which decided to strengthen it by attracting private capital.
The number of subscribers of China Unicom is one of the largest companies providing cellular services. However, competition in this market and adversely affect the financial performance of the company. As a result, she started to lag behind China Mobile and China Telecom at the speed of introduction of new technologies.
Earlier it was reported that Alibaba Group Holdings, Tencent Holdings and other investors will invest in the development of China Unicom for about $ 10 billion. With contributions from Baidu and JD.com this amount will be close to 11.8 billion dollars. Primarily, the investment will be raised through issue of shares. It is the largest project of its kind in the region since 2010. It is expected to be implemented until the end of August. When this happens, the state’s share in China Unicom will be reduced from the current 63% to 40%. It is expected that the new funds will allow the operator to start the active introduction of technology 5G, embodying China’s plan to build the world’s largest 5G network.
Introduced Baidu and JD.com not to give comments to the source.