Friday October 14, 2016

Newegg Now Owned By A Chinese Company

Wow, this news item almost slipped under the radar. It would seem that Newegg has become a subsidiary of the Chinese company Liaison Interactive. We aren't sure what effect, if any, this will have on the company moving forward. Thanks to ashmelev75 for the heads up.

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.