Ant Financial Plans To Hit IPO
Alibaba acquired a 33% stake in Ant Financial, the fintech unit Jack Ma controversially spun out of Alibaba Group in 2011. Alibaba first floated the idea of acquiring equity in Ant last year but regulators only just approved the purchase. The equity interest cancels Ant and Ali’s previous profit-sharing deal, where the fintech unit paid a 37.5% on profits to Alibaba. Analysts see the deal as a sign that Ant Financial is preparing for an IPO. (Fortune)
Why it matters: The deal further strengthens Alibaba’s relationship with the fintech firm and bumps up its valuation. The transaction hints that Ant Financial’s long-anticipated initial public offering (IPO) could be near. Ant Financial is one of the world’s most valuable startups after closing a record $14 billion fundraise at $150 billion valuation in June.
Meanwhile, Facebook’s digital; currency, Libra, will not stock the yuan in its currency basket. The exclusion could be a way to win favor with Facebook’s U.S. home market, where officials are wary of China’s growing economic influence. The governor of China’s central bank had noted that China will launch a national cryptocurrency.