Alibaba has purchased a controlling stake in online marketing firm AdChina in order to boost its advertizing portfolio.
The e-commerce firm said Wednesday it now owns a controlling stake in Shanghai-based AdChina, according to Reuters.
Financial details were not disclosed.
AdChina, founded in 2007, is an Internet advertising platform which offers businesses software solutions for developing advertizements in different formats. The company has managed to secure $10 million through various funding rounds in the past. AdChina filed for a $100 million IPO in February 2012, but pulled the plans a year after.
The investment allows Alibaba to improve its online and mobile advertizing strategy. The online marketplace company sells marketing services to merchants on Alibaba's platform, and by acquiring and investing in specialists, Alibaba can only hone its competitive edge.
An Alibaba statement said:
"Alibaba's strategic stake is expected to allow AdChina to enhance its competitive strengths in its existing businesses."
The statement says AdChina will work closely with Alibaba's current online marketing platform Alimama as well as the firm's cloud computing unit, Aliyun. AdChina's goal will be to contribute to the development of an end-to-end data-driven digital marketing platform. The project is expected to take three to five years.
According to local media, Alan Yan Fangjun, founder and chief executive of AdChina told reporters Monday that AdChina would not give up the "dream of an independent listing."
Last year, Alibaba celebrated the biggest IPO in the United States on record.
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