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Alibaba acquires 9.3% stake in Zulily


Seattle – Chinese e-commerce giant Alibaba Holding Group Ltd. continues to ramp up its ties in the United States with the news that it has acquired a 9.3% stake, estimated at about $150 million, in U.S. online retailer Zulily. According to regulatory filings, Alibaba said it bought approximately 4.8 million Class A shares of the company for about $56 million.

Zulily, which sells clothing, home decor and related items, recently released disappointing results for the first quarter of fiscal 2015, including a miss on revenues of about $307 million and a second quarter revenue forecast well below Wall Street expectations. However, the online retailer also recently launched its first major website redesign, which will provide a more customized daily shopping experience for each of its customers.

“Alibaba continues to focus on making investments in forward-thinking, innovative entrepreneurs that are developing leading products and technologies,” the company said in a statement. “We support innovation and entrepreneurship and believe we can share and learn from these types of partners. The Zulily team has a compelling vision for the future that is consistent with our investment philosophy.”

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