Friday, October 14th 2016
Newegg Now Owned by Chinese Company
The Wall Street Journal's earlier report about an expected record-setting 2016 in regards to chinese investment in the United States was right. Newegg Inc., one of the most popular online tech-related retailers, is now reportedly owned by chinese company Hangzhao Liaison Interactive Information Technology Co., Ltd. (Liaison Interactive).
After September's reports of a significant investment from the Chinese company on Newegg, which would allow the California-based company to "accelerate the pursuit of the company's strategic initiatives" and into high-growth markets such as eSports, VR (Virtual Reality) and AR (Augmented Reality), it now appears that the investment was much more than a simple capital infusion: it was a bid towards controlling an effective majority in the American company's shares.
The deal, with a value estimated around 17.7 billion yuan (around 2.63 billion dollars; higher than some countries' GDP), will give Liaison Interactive control of 55.7% of the California-based company. As a result, Newegg thus becomes one of Liaison Interactive's subsidiaries.
The deal is expected to aid Liaison Interactive in bolstering its global competitiveness, allowing for a gigantic expansion into the American market. The company praised Newegg's recognizable brand and strong consumer confidence. Liaison Interactive expects Newegg to become an important part of the company's liquidity channel through its hardware and software offers, thus complementing the China-based company's product channels. As always, in the wake of this acquisition, changes are expected in Newegg's overall structure, in either its organization, personnel, business, financial and/or management fields.
Source:
UDN News
After September's reports of a significant investment from the Chinese company on Newegg, which would allow the California-based company to "accelerate the pursuit of the company's strategic initiatives" and into high-growth markets such as eSports, VR (Virtual Reality) and AR (Augmented Reality), it now appears that the investment was much more than a simple capital infusion: it was a bid towards controlling an effective majority in the American company's shares.
The deal is expected to aid Liaison Interactive in bolstering its global competitiveness, allowing for a gigantic expansion into the American market. The company praised Newegg's recognizable brand and strong consumer confidence. Liaison Interactive expects Newegg to become an important part of the company's liquidity channel through its hardware and software offers, thus complementing the China-based company's product channels. As always, in the wake of this acquisition, changes are expected in Newegg's overall structure, in either its organization, personnel, business, financial and/or management fields.
116 Comments on Newegg Now Owned by Chinese Company
Amazon is the way to go. Some items are slower to get to Amazon but if you have a problem Amazon stands by it. Replacement, refund, anything - customer first. If you buy it you know exactly when it ships - same day or next day if you have Prime (and you even know which it will be before purchase). You get items in two days or next day for just a few bucks. If you need to speak with someone they are there instantly or in minutes.
I used to buy almost all of my hardware from Newegg but in recent years I've bought almost everything from Amazon. I still use Newegg to sort through a category of a piece of hardware and then when I find a few that I'm interested in I check Amazon. Usually Amazon has the same or better price and I can count on getting free shipping if order is over $49.
Amazon isn't the most excellent, but at least they have easy no hassle returns and carry most everything with same if not lower prices than Newegg. I switched over a bout a year ago and never looked back.
Microcenter is my go to of course, id pay a little extra just to be able to walk into a store and return it if I need too, plus being able to see what you buy before hand is nice.
I expect that now we will see a lot more of the $7,500.00 Chinese knockoff GPU's for sale. :laugh::laugh:
Even so, I cannot bring myself to use Amazon for tech for anything other than a sale until they fix their stupid organization and classification. It is HORRIBLE!.
What I do like about Amazon is free shipping option in Canada. It's especially great option for buying cases where Neweggs charge at east 15 CAD for shipping whereas Amazon charges zero.
www.amazon.com/s/ref=nb_sb_ss_fb_2_12?url=search-alias=computers&field-keywords=msi+gtx+1070&sprefix=MSI+GTX+1070,undefined,263
Just on the first of 14 pages, you have laptops, SLI bridges and desktops as well as actual GPU's. At least with Newegg, that shit is not all jumbled together like a box of toys dumped on the floor.
I try and make most of my purchases on Amazon these days for this exact reason.
I suppose having your company name abbreviate to 1337 is a bit harder. ;)
(Ignoring the first word as that usually seems to just denote the location with Chinese companies).
but lately, they've been slipping. their prices are not as competitive as they used to be, and they charge so much for shipping. Usually amazon ends up cheaper. Which sucks, because amazon doesnt have everything.
then you add in newegg's customer support issues and the fact that much of their stuff is not refundable, only replaceable with the same thing, and newegg isnt really top of my list anymore.
Sadly, it will probably end up going the way of tigerdirect in a few years.