China online trader Alibaba has acquired a substantial stake in what is considered the world’s leading provider of mobile internet software and services, UCWeb.
The news follows the recent announcement that Alibaba founder Jack Ma has gained a seat on the board and Alibaba’s now ‘substantial’ stake has replaced those of two backers, Morningside Ventures and Nokia’s corporate venturing unit, Nokia Growth Partners, according to a Forbes news report. Alibaba has been an investor in the browser company since 2009.
UCWeb has made public that Alibaba’s investment valued the company at over $1bn and will be aiming for a larger valuation when it comes time to float the business.
In 2006, the company received undisclosed funding from entrepreneur and individual investor Lei Jun. The company later raised funding from Alibaba in 2009. Its last funding round was in 2012. Other investors have included Morningside Group, Ceyuan Ventures and GGV Capital.
Other recent strategic investment moves by Alibaba include online map company, AutoNavi Holding, and Sina Corp’s microblog site.