Alibaba can afford to spend up to $38 billion on mergers, acquisitions and investments over the course of 2016, according to a Bloomberg report.
In 2015, the Chinese e-commerce heavyweight spent around $15 billion on mergers, acquisitions and investment. In India too, 2015 saw Alibaba make investments in the country’s burgeoning e-commerce space for the first time. In August the company featured among the investors who put in $500 million into Delhi-based online marketplace Snapdeal and in September it invested in Paytm which will also make its inventory available to Indian consumers.
The forecast of $38 billion is based on the available cash flow of the company along with its current cash hoard and is compiled by French multinational bank and financial services company BNP Paribas SA.
Reportedly, other Chinese companies like Tencent and Baidu are also looking at increasing their spendings substantially with $35 billion and $15 billion, respectively.
Alibaba currently has a market value of $209 billion.
BW Reporters
Simar Singh is one of the youngest members of the BW team. A fresh graduate from IIMC, she also holds a degree in political science from LSR. She enjoys covering power, startups, lifestyle and a little bit of tech.
