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Alibaba may add Line to cement position
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China’s largest e-commerce company Alibaba may soon acquire Japanese online messaging service provider Line Corp as it seeks to cement its market position and compete with rival Tencent’s popular WeChat application.
Alibaba declined to comment on rumors yesterday, but market watchers pointed out that Line could complement the company’s shortage in the online messaging sector and may allow it to quickly catch up with Tencent.
“Integrating Alibaba’s current service with Line will have great growth potential and it may serve as a good opportunity for Alibaba to catch up in the mobile Internet sector,” Internet consultant Analysys International said in a note yesterday.
Tencent’s mobile QQ has the largest number of users in China in January with 32.5 million users, followed by WeChat’s 29.6 million users, according to Analysys International.
Alibaba has made several investment in recent months to diversify from its online shopping dominance to online mapping, mobile payment and social networking.
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