Meitu Inc. announced a major strategic investment agreement with Alibaba Group, in which Alibaba will invest $250 million in Meitu through a convertible bond. This investment will provide strong support for deep cooperation between the two parties in multiple fields such as e-commerce platforms, artificial intelligence (AI) technology, and cloud computing.
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According to the agreement, the term of this convertible bond is three years with an annual interest rate of 1%. Alibaba can convert it into shares of Meitu at HKD 6.00 per share within three years from the issuance date of the bond. This move not only injects new capital into Meitu but also provides potential equity returns for Alibaba.
Meitu's collaboration with Alibaba will focus on e-commerce and model development. Alibaba plans to prioritize promoting Meitu’s AI e-commerce tools on its e-commerce platforms, which will help improve marketing and operational efficiency for merchants. At the same time, Alibaba will assist Meitu in developing new tools for generating images and videos driven by data, further enhancing consumers' shopping experience.
In terms of technical support, Alibaba will provide necessary technical assistance for Meitu's core business to meet its computational needs in AI product inference and training. Moreover, Meitu Company has committed to purchasing no less than RMB 560 million worth of cloud services from Alibaba within the next three years, which will further strengthen their business ties.
It is worth noting that both parties also plan to explore more differentiated innovative projects to create unique experiences for users on their respective platforms. The signing of the investment agreement marks the entry of cooperation between the two companies into a new stage. However, the final closing still requires approval from relevant government authorities and other conditions, including the approval of the Hong Kong Stock Exchange and the state development and reform commission's approval of the bond issuance.
Key Points:
🌟 Meitu and Alibaba sign a $250 million convertible bond agreement to promote strategic cooperation.
🤝 Alibaba will prioritize promoting Meitu's AI e-commerce tools, helping to improve merchant marketing efficiency.
☁️ Meitu commits to purchasing no less than RMB 560 million worth of cloud services from Alibaba over the next three years.