By Peter J. Mayer and Robert J. Schlesinger, The Washington Post-PayPal article Paypal has bought into a $1 billion Chinese investment fund that is valued at $1,500 billion, raising the stakes of some of China’s biggest technology companies.
The transaction, which is expected to close in the first quarter, is the latest effort by a global tech company to acquire an existing Chinese investment firm.
In March, Amazon acquired ecommerce company Zomato for $550 million, while Microsoft has been investing $500 million into the Zomavision technology startup.
Alibaba is also buying Zomatool, a startup that is focused on building a data-centric payment system.
Paypal’s deal comes after the payment firm secured an initial $250 million investment from China’s Alibaba Group Holding Ltd., a subsidiary of China Investment Corp. The deal was announced on Tuesday in Beijing, where Alibaba has an office.
Alibaba declined to comment.
The Alibaba deal has a price tag of about $1 trillion, but the firm’s stock has fallen about 20% in 2017.
Alibaba was founded in 2002 and is now the world’s second-largest private-equity firm by market value after Google.
The company has also recently been facing pressure from regulators over its financing of some projects in China.
“This transaction demonstrates Paypal and Zomax’s commitment to Chinese companies and investors through investments in the next decade,” PayPal chief financial officer David Ebersman said in a statement.
“We look forward to deepening our relationship with Zomazion to bring them to our marketplace as a valued member of the global ecommerce ecosystem.”
The deal with ZOMATool will be the second of its kind in China, following an investment by another tech firm, SoftBank Group Corp. Earlier this year, PayPal announced it had acquired a minority stake in a China-based company that develops blockchain-based smart contracts.
In June, PayPal also bought a majority stake in the online marketplace Alibaba Group.
PayPal is the largest online payment processor in the world with more than 11 million users, according to figures from CoinMarketCap.com.
Zomacool is part of a broader technology fund led by Tencent Holdings Ltd.
Tencent has been a leading player in China’s emerging tech industry, investing heavily in e-commerce and mobile payments.
In 2017, the company also made a $100.4 million investment into the global cloud provider Haidian.
Ten, which operates a cloud-based payment processing system, has also been an early investor in several Chinese tech companies, including Zomakoin.
Alibaba has been buying into Chinese tech firms for several years.
In 2016, the Internet giant invested $2.2 billion in the Chinese e-sports league e-Sports World League, which has since closed its doors.
Alibaba also invested $1 million in Chinese smartphone maker Xiaomi in 2017, as well as $3.3 million in the mobile payment firm Zomapay, which it bought in 2016.
In 2018, Zomapo bought an interest in Zomad, a Chinese online payments service.
Last year, Zimapo also purchased a majority interest in mobile payment provider Paymet.
Zimapay’s shares are down more than 60% this year as a result of its recent investment in Tencent.
Zoomapay is part-owned by Zomamoin.
Zompay, Zompa and Zompad are among a number of Chinese tech giants that have recently made acquisitions.
Zombox, a cloud platform that allows businesses to pay customers with a single payment method, has raised about $5 billion.
Zempo, a digital wallet that allows people to send money to each other using a smartphone, has invested $3 billion.
Earlier in 2017 and 2018, the China National Post, a state-owned newspaper, reported that Chinese internet giants were planning to merge with one of Alibaba’s internet companies, Paypay.
The merger was first reported by the Global Times, an online tabloid that is affiliated with China’s ruling Communist Party.
In a statement on Wednesday, Zombo, PayPay and Zombao said the merger was in line with Alibaba’s goal of becoming a “world-class digital payment platform.”
The companies did not respond to requests for comment.
A spokesperson for Alibaba did not immediately respond to a request for comment on Zomazo’s recent acquisition.