Alibaba wants to weigh in online lottery with AGTech

by bold-lichterman

Alibaba is taking a keen interest in the online lottery market. The Chinese e-commerce giant and Ali Fortune Investment Holding, a structure in which it holds the majority stake, will spend 2.39 billion Hong Kong dollars (around 280 million euros) in AGTech, Bloomberg reports. The operation should be carried out by both the purchase of shares and convertible bonds, according to the American agency which points out that this transaction will allow it to hold more than 59% of the company’s capital.

Listed on the stock exchange, AGTech develops online gaming technologies, in particular lotteries. On its website, the company claims to bring together more than 200 professionals and cover 80% of Chinese provinces and municipalities.

The announcement comes as Alibaba seeks to further diversify its activities. Beyond online games and lotteries, the firm founded by Jack Ma has notably invested in the American virtual reality start-up Magic Leap and acquired Youku Tudou, the “Chinese YouTube”. To finance these operations, the group can in particular rely on the more than 25 billion dollars that it raised during its IPO in 2014.