Alibaba Strikes 5-Year Cloud Deal with Indonesia's GoTo, Delays Stake Divestment
Portfolio Pulse from Anusuya Lahiri
Alibaba has signed a five-year cloud service deal with Indonesia's GoTo Group, agreeing not to divest its stake in the company during this period. The deal comes as Alibaba faces challenges from domestic competition and U.S. sanctions. GoTo is currently unprofitable and has been restructuring.
September 18, 2024 | 12:46 pm
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Alibaba's new 5-year cloud deal with GoTo Group may provide a stable revenue stream amidst its current challenges, including domestic competition and U.S. sanctions. The agreement to not divest its stake in GoTo could stabilize its investment.
The partnership with GoTo could enhance Alibaba's cloud revenue, providing a stable income source as it faces competitive pressures and regulatory challenges. The decision to retain its stake in GoTo suggests confidence in the long-term potential of the investment.
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