PRESS RELEASE
Comprehensive report on Alibaba.com comments on market value and competition
Hong Kong, 5th November: A report just published in Hong Kong provides unique analysis of Alibaba.com, the divisions of the Alibaba Group to be listed on the Hong Kong Stock Exchange on 6th November. The report has been researched and written by the only consultancy in Asia specializing in B2B media, information and events, Business Strategies Group Ltd. (BSG).
Alibaba.com is the B2B division of the Alibaba Group. When its stocks start trading on the Hong Kong market, it will be valued at some US$8.8 billion – almost five times BSG’s estimated total size of the China B2B media market in 2007. BSG’s estimates the total B2B media marketplace in mainland China including exhibitions, online and magazines in 2006 was US$1.41 billion. This market is growing rapidly at 25 – 30% a year, but despite the strong growth, Alibaba.com’s IPO still values the company at several times the total market size.
BSG Principal, Paul Woodward, commented “there is justifiably a huge amount of interest in Alibaba. It’s an exciting company and combines some of the most interesting aspects of China and the Internet. However, there hasn’t so far been too much effort to place the parts of the company being listed in the context of the market in which they operate. It’s not the general Internet business being listed here, but the B2B media operations. That’s not the same thing and careful comparisons are required”.
The report includes a detailed comparison with Nasdaq-listed Global Sources, Alibaba.com’s most direct competitor among B2B media companies. It also describes possible strategies that BSG’s consulting team believes Alibaba.com will pursue in order to justify the huge valuation given by the market to the company at the time of its IPO.
The report BSG has produced was distributed on 2nd November to subscribers of its Asian Business Media Tracker service. It is also available for purchase on a stand-alone basis.
ENDS
No comments:
Post a Comment