Newegg Now Owned by Chinese Company

[Raevenlord]

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.

View at TechPowerUp Main Site

 

[R-T-B]

I haven't bought from newegg in a while, Amazon just works better for me and delivers faster... but I am still sad to see an old-time (at least, in tech terms) American company go to China like that.

 

[20mmrain]

well there goes the customer service at newegg.

 

[Beertintedgoggles]

It's been Amazon and Microcenter for me for quite a while now. Every once in a long while, I'll check out Newegg's page and see a shell shocker deal that tempts me but I've held off on buying anything from them for longer than I can remember. Their prices used to be spectacular, any more they just seem to be another retailer.

 

[ssdpro]

well there goes the customer service at newegg.

Can it be worse? If you buy something between 1 November and 31 January you get hour long waits on hold. They charge 15% restock fees on just about everything. Some items can be returned for refund, some items replacement only. Sometimes your item ships next day, sometimes in three days. Sometimes they ship it on a Friday and send tracking but nothing actually ships until the next Tuesday. Fragile items ship in boxes too big with no foam or padding.

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.

 

[Prima.Vera]

The Chinese are not conquering U.S. Are buying it piece by piece...

 

[ssdpro]

I haven't bought from newegg in a while, Amazon just works better for me and delivers faster...

Exactly

 

[64K]

I hope this doesn't end up badly for Newegg.

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.

 

[R-T-B]

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.

Once upon a time, that was newegg.

 

[MxPhenom 216]

RIP Newegg.

 

[Caring1]

Welcome to the new Ali Baba

 

[Steven B]

From all their shady activities, i thought they were already owned by a Chinese company? Maybe they are now officially owned by one?

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.

 

[rtwjunkie]

The Chinese are not conquering U.S. Are buying it piece by piece...

I always have told my friends the Chinese don't need to conquer the U.S. militarily. We're selling it to them bit by bit.

I expect that now we will see a lot more of the $7,500.00 Chinese knockoff GPU's for sale.

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!.

 

[Steven B]

I always have told my friends the Chinese don't need to conquer the U.S. militarily. We're selling it to them bit by bit.

I expect that now we will see a lot more of the $7,500.00 Chinese knockoff GPU's for sale.

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!.

That's why you research which product you want elsewhere and just purchase from Amazon (I only purchase if it has prime for example, since I have prime).

 

[alucasa]

Used to use Newegg 100% but lately I've been using Amazon more. So right now it's more like Newegg 70% / Amazon 30%.

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.

 

[rtwjunkie]

That's why you research which product you want elsewhere and just purchase from Amazon (I only purchase if it has prime for example, since I have prime).

Which I do. Now look what I found simply searching for MSI GTX 1070.
https://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.

 

[newtekie1]

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!.

Agreed, which is why I almost exclusively still buy my tech purchases from Newegg. I've never really had a problem with the customer service, maybe being a premier member helps, I do know you get a special premier member support phone number. I've never had a hassle with returns from Newegg either.

 

[Solidstate89]

well there goes the customer service at newegg.

The customer service advantage that Newegg once had, has been gone for years now. I don't see how it could get any worse.

I try and make most of my purchases on Amazon these days for this exact reason.

 

[nemesis.ie]

So NewEgg is now owned by a company called "LIIT".

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).

 

[TheinsanegamerN]

Newegg used to be great. Even recently, they had that kick-ass lawyer taking on patent trolls.

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.

 

[Jetster]

Well I guess they will have more counterfeits

 

[acperience7]

Built my last2 PC 's with these guys, but that was back in 2013 (last full build) . Since then it's been Micro Center and Amazon for me. I never had a bad experience with Newegg. The walls just kinda rose up around them.

 

[Fourstaff]

US has a very vibrant capital market, the fact that Newegg is being bought by Chinese not by savvy US investors means that its probably not attractive enough.

 

[RejZoR]

Soon, China will own everything. Basically their companies can get huge within their own market and then they can buy even global players because China alone has so many people it's like 1/3 of the entire world within their country itself. Only other country that can brag with that is India. Which is basically the other 1/3 of the world population...

 

[domnatr6]

Welp, that's it for my business. I pretty much exclusively used Newegg for major tech upgrades/purchases for years now. Enjoyed the layout and ability to find products much better than Amazon for building PC's. My cash will now go to AMZ.