E-commerce company Alibaba agreed yesterday to invest $590m in China-based smartphone manufacturer Meizu in return for a minority stake.
Founded in 2003, Meizu initially launched as a mobile music player producer, before releasing its first smartphone in 2008. It shipped 1.5 million phones in January this year but is not yet among China’s top five smartphone makers by sales volume.
The investment is set to herald closer collaboration between the companies, as Meizu’s hardware is integrated more fully with Alibaba’s mobile operating system. Alibaba will supply Meizu with its mobile internet and data resources, and will also distribute the company’s phones through its sales channels.
Jian Wang, Alibaba’s chief technology officer of Alibaba Group, said: “The investment in Meizu represents a significant expansion of the Alibaba Group ecosystem and an important step in our overall mobile strategy as we strive to bring users a wider array of mobile offerings and experiences.”
Meizu closed its first round of funding in 2014, raising about $300m from undisclosed backers at a valuation of more than $3bn.