Alibaba chief Jack Ma stepped down on Friday before a potential initial public offering as the Chinese online retail giant announced a $294 million stake purchase in digital mapping firm AutoNavi.
Alibaba, the world’s largest online retailer, said it bought a 28 per cent stake in Nasdaq-listed AutoNavi, its second big purchase in as many weeks.
The deal follows Alibaba’s $586 million purchase of an 18 per cent stake in China’s dominant microblog provider Sina Weibo, a separate transaction that was announced on April 29.
The moves come before an expected initial public offering by Alibaba, which analysts say could value the group at between $60 billion and $100 billion, prompting comparisons with Facebook’s blockbuster IPO.
At a company event in Hangzhou city, 48-year-old Ma handed over the reins of the company to Lu Zhaoxi - previously executive vice president -reaffirming his decision announced four months ago to step down as chief executive officer.
“From tomorrow I will have a new life and life will be my job. I sincerely ask everyone to support Lu Zhaoxi like you have supported me and trust Lu like you have trusted me,” Ma told 30,000 employees and clients at the event.
Lu said he would carry on the mission of Alibaba by making the company transparent and responsible.