Pawns are about to move in the web Risiko. Alibaba is on the verge of investing 300 million dollars in Farfetch. Richemont would also be ready to support the luxury e-tailer. Meanwhile, rumours have already caused the e-tailer price to surge, which has reached an all-time high, thanks to an increase of up to 20%. Eurazeo took advantage of the moment and sold all its shares, obtaining a large surplus.
The web Risiko
According to what WWD summarises, Alibaba is planning a 300 million dollars investment in Farfetch. At the moment the two companies have not commented. It should be remembered that other Chinese companies, as well as Alibaba’s competitors, have already invested in Farfetch: JD.com invested 397 million dollars in 2017 and Tencent 125 million dollars earlier this year. The Swiss Richemont would also be considering buying a stake in Farfetch. Also, in this case it should be highlighted how Richemont and Alibaba are partners in China, but also how the Swiss group owns Yoox-Net-a-porter, that is Farfetch’s main competitor. Could a battle of the online titans have begun to face the investments that Amazon has recently made in fashion and luxury?
Meanwhile Eurazeo is delighted
Meanwhile Eurazeo is delighted. The investment firm had been a shareholder of Farfetch since May 2016, and took the rise in shares of the British e-tailer to complete the sale of all of its shares. Sale from which they made 90.4 million euros but, above all, a great gain compared to the original investment.