Baidu Waimai, the food delivery unit of Chinese search engine company Baidu Inc., is rumored to be in merger talks with Ele.me, a food ordering mobile app backed by Alibaba Group Holding Ltd. and Ant Financial.
According to Chinese media reports citing insiders, the deal would involve the two companies merging and Baidu acquiring shares in the new firm. The reports did not speculate on what size stake Baidu would hold.
Local media has also speculated that Alibaba is considering a full acquisition of Ele.me, citing insiders. Two months ago, Alibaba and Ant Financial injected over US$1 billion into the start-up, which valued Ele.me at US$5.5 billion to US$6 billion post-money.
The latest reports come two months after Baidu Waimai reportedly abandoned a deal to tie up with delivery giant SF Express. In May, Baidu Waimai and SF Express w...
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