2014-03-16

Alibaba Begins the IPO Process in the U.S.

Alibaba Said to Plan to File for U.S. IPO as Soon as April
The company generated $2.8 billion in net income attributable to ordinary shareholders in the year through September, according to quarterly filings by Yahoo. Revenue in the period was $6.7 billion.

Alibaba is valued at $153 billion according to the average of 10 analysts’ estimates compiled by Bloomberg News. That’s about 23 times annual sales. Amazon.com Inc. (AMZN)’s $172 billion market value is about 2.3 times 2013 sales, and EBay Inc. fetches about 4.6 times sales with a market value of about $73 billion, according to data compiled by Bloomberg.
A bubble valuation right off the bat.

Alibaba Confirms It Will Begin I.P.O. Process in U.S.
The short blog post formally highlights that the company is on its way toward setting up its long-awaited initial public offering, one that could set records as the biggest ever. Among China’s burgeoning contingent of Internet titans, Alibaba is unique — part eBay, part Google, part PayPal.

Its I.P.O. could eventually raise more than the $16 billion that Facebook reaped in its public debut nearly two years ago. Analysts speculate that the company could fetch a valuation well north of $130 billion.

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