According to The Beijing News on April 3rd, China’s bike sharing unicorn Mobike held a board meeting and approved the acquisition by Chinese tech giant Meituan Dianping.
Insiders revealed that Meituan acquired Mobike with 35% by its stake and 65% in cash, among which USD 320 million will be used to increase liquidity. Mobike’s founding team and its Series A & Series B investors will get USD 750 million in cash. China’s ride haling giant Didi Chuxing had also offered to invest in Mobike, but failed to make an agreement.
“Instead of losing all the investment, I am comforted that actually we have made slight profitability,” Wang Xiaofeng, CEO of Mobike, said at the board meeting, according to Yicai.com.
Wang said that Mobike team had made many mistakes in the past. He personally had always insisted on Mobike’s independent developing. However, startups can never avoid compitition with tech giants in China. “Many shareholders had asked for my advice. To be frank, if Mobike had developed independently, there would be a lot of chances for the company as well as challenges. However, I had no choice… I had to trust that the investment institutions have their own assessment for the business,” shared by Wang.
One source told TMTpost that Mobike’s founding team will not leave the company.
“It is a new start for me. Many people thinks that Mobike just offers a travel tool. According to me, I always say that it is “a wonderful life style” about simplicity, essence, health, and not too much material life. “Live better” is Meituan Dianping’s vision as well. At this point, we have a great potential to cooperate,” commented by Hu Weiwei, founder of Mobike, on her personal WeChat (with attaching the song “The Beginning Of The End” by Nine Inch Nails).
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Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.