58.com is a highly popular classified site, often compared to the United States Craigslist in terms of what a person can do on this site. Due to its popularity, the shares with 58.com are rising incredibly fast. Since the company went public in 2013, the shares have increase by 28%, making the cost of each share around $65.48. This is considered to be an all time high for the company.
Due to the increase in popularity, 58.com and Ganji.com have joined forces together. The goal of the two companies is to have a huge online marketplace hosting classified ads to reach each individual they can. With the combination of the two companies, this could increase the value of the two to a combined $10 billion.
The details of how the combination will happen, and the time frame, is something in which the companies are not commenting on. However, it is known that 58.com founder Jinbo Yao, and Ganji.com founder Haoyong Ynag will become co-chief executives of the new combination.
The idea behind joining forces is to help to reduce marketing costs. This is an issue many people have worried about, as they see these small companies spending tons of money to draw in customers, and it has been stating that if the online shopping bubble were to pop, these companies would be in trouble.
In terms of marketing costs, both 58.com and Ganji.com spend approximately $250 million per year each.
Chart courtesy of http://www.nasdaq.com/symbol/wuba/stock-chart
The chart above shows just how well 58.com has been doing on the market. It is estimated once the two companies join forces, the new platform will be highly popular and will see a dramatic increase in consumers.
Get the latest China digital trends, subscribe and keep current:
- Successful China Digital Case Studies of the World’s Top Brands
- Join SBW Linkedin Group
- Follow SBW on Facebook
