8848.net Plans a Spin-offChinese e-commerce firm 8848.net announced Wednesday, December 13, that it would concentrate on business-to-business trade and spin off a separate company to handle consumer goods.Chief Executive Officer Zhi Tan said the aim was to help both sides of the business, owned partly by Japan's Softbank Corp, achieve profitability faster. The reorganization follows dashed plans by 8848 to become the first Chinese e-commerce player to list on Nasdaq, and illustrates a more focused business approach by Chinese dotcoms since the Internet bubble burst this year. "In order to be the leader in both areas we decided to separate the businesses," Tan told reporters. "The businesses have two different sets of customer bases," he said. "The marketing approach is different too." The split will formally take effect on January 1. Tan said 8848.net will maintain its original ownership structure. More than a dozen foreign companies - including Softbank and Boston-based media group IDG - hold a majority stake and management holds the remaining shares. The Amazon.com-style retail company, selling everything from books to electronics, would be called My8848.net, Tan said. 8848.net will be a minority shareholder in My8848.net, and undisclosed domestic Chinese investors would take the bulk of the company, Tan said, adding that he would remain CEO of 8848.net and sit on the board of My8848.net. 8848.net started last year as a consumer goods e-commerce site, but early this year introduced business-to-business operations that have become the bigger earner and now comprise 80 per cent of total revenues, Tan said. |
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