TapTechNews September 17th news, according to a report by Bloomberg today, Alibaba has signed a memorandum of understanding on using cloud technology with the Indonesian internet company GoTo.
The Indonesian internet company GoTo agreed to use the cloud services of Alibaba Group Holding Limited, and the latter promised not to further sell GoTo's shares during the agreement period.
It is reported that this deal may support GoTo's stock price. Since its initial public offering in 2022, GoTo's stock price has dropped by about 80% due to the reduction of holdings by Alibaba and other major shareholders. The early investor Alibaba sold billions of shares, and its shareholding ratio has been reduced from about 9% in 2022 to about 7.5%.
As part of the five-year agreement, GoTo will use Alibaba's computer infrastructure to help operate its services, which cover ride-hailing and delivery services in Indonesia and Singapore. The two companies did not disclose the value of this transaction, and the transaction was carried out in the form of a non-binding memorandum of understanding.
The unprofitable GoTo competes with Singapore GrabHoldingsLtd. in the highly competitive Southeast Asian market. As user growth slows, the company has downsized and withdrawn from the markets of Vietnam and Thailand, and also sold its loss-making e-commerce division Tokopedia to TikTok in a deal worth $1.5 billion (TapTechNews note: currently about 10.642 billion yuan) at the end of last year.