Newegg Purchased by Chinese Company
Online tech retailer Newegg is now owned by a Chinese company called Hangzhao Liaison Interactive Informational Technology Co., Ltd. The deal took place late last week, and many don’t know how to look at the new deal.
After the large investments made by Liaison Interactive to Newegg in September, it now appears that the investments were a bid to buy out a majority stake in the company. The rumored deal was reportedly made for ~2.63 Billion USD giving Liaison Interactive a 55.7% stake in the company.
There will no doubt be some changes in Newegg’s structure in management, personnel, and financial fields, however the acquisition was made by Liaison Interactive to help aid in growing to compete with the composition of other large retailers. Many are unsure whether the deal with help or hurt Newegg, but only time will tell to see what direction the company goes in.