Several major tech companies that invested heavily in acquisitions are now selling off underperforming assets at significantly lower prices.
Alibaba Group, known for its aggressive acquisition strategy, is one such company. It has announced plans to sell Chinese department-store chain Intime to a local apparel group for $1 billion, marking a 30% decrease from the company’s valuation when it bought the business in 2017. This move comes after Alibaba largely abandoned its acquisitive approach amid government pressure.
Other companies are also following suit, “trimming excess” and “dumping underperformers”. BlackBerry Limited has also made headlines with plans to sell off assets at reduced prices.
Source: https://www.bloomberg.com/news/articles/2024-12-19/companies-that-spent-billions-on-m-a-are-now-selling-for-peanuts