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
This is quite similar to the earlier Japanese buying spree when the Japanese Real Estate market soared through the roof. It has been like this for most developing countries. Then it was Japanese, now it is Chinese, in a few years it might be another country. However the same strict market rules still apply to all of them in US. It is not like they can operate in US like they are in China.
I wouldn't call most comments here racist, more like ignorance based on lack of knowledge.
Newegg has never been had the best prices, but they get the products first that's for sure. Its a day by day thing. If they have what I need then I go to them. Its the free market
For those who disagree with buying from a Chinese company , what car do you drive? what monitor do you have? Hard Drive, graphics the list goes on
Newegg was always the easiest in drilling down to figure out what you were looking for. Their pricing has been good in the past, but I always check prices before buying. Out of the last 30 computer item I've purchased I might have gotten two from Amazon, their prices are far from always the best (including I have Prime and buy tons of stuff from Amazon). Always have had deliveries from Egg on the doorstep in less than 3-Days (<25mi away), most of the time it's dropped by OnTrack, or anymore Egg's own fleet of Transports'. Being I'm minutes away from both a Fry's and MicroCenter I do purchases from either, but for me it's mostly about price (with shipping and to get it to the doorstep) and more often than not... Newegg comes out on top.
Newegg customer service has always been above board and always fair about returns, exchanges and/or refunds, credit.
Now Newegg is going to go down, too.
/sigh
Really liked Newegg due to receipt's as they keep them for many years so no worry about losing one. Prices have always been alright for me even more so the tax free part which may of ended some time ago although not to sure about that.
Should i expect more spam now too :P.
Amazon has the best customer service and that's what matters most to me, especially that they make returning things so easy by shipping you a replacement first with a box and label for the item to be returned.
Day 1: Accept your money. Day 2: Look at your order. Supervisor talks to employees about maybe, at their leisure gathering up some of your order. Day 3: Find most of your items in warehouse. Day 4: Finish finding all your items and send to packaging. But, it's too late to go out, so pickup is scheduled the next day. However, status shows shipped because they entered they printed the shipping labels. Day 5: Package is picked up by a Nepalese porter and hand carried to the nearest shipping place with the slowest service. It sits for the afternoon. Day 6 (very early- 1AM) your package is loaded on a truck. Day 7: it arrives at a transfer point. There it sits to await enough packages going to nearest transfer center to you on Day 8, when it finally departs and is then incommunicado on tracking until Day 12, when status finally shows "Out For Delivery".
The shipped and expected delivery days have broken down though. Sometimes I get a email saying the items have shipped after I receive them and sometimes I don't receive any emails after ordering anymore.