58.com Buys Majority Stake In Chinese Automobile Service
Chinese online classifieds services company 58.com Inc. has acquired a 70% equity stake in a Chinese automotive information service.
58.com's investment in Leftbrain, a technology company that is listed on China's National Equities and Exchange and Quotation, is for a total consideration of CNY100 million in cash. Leftbrain owns and operates XGO.com.cn, an automotive information website and service platform in China. Subject to customary closing conditions, the transaction is expected to close soon.
Founded in Beijing in 2007, XGO, otherwise known as AutoComment, provides comprehensive and independent interactive content to automobile buyers and owners in China. With its large user base, AutoComment has become a preferred advertising platform for auto manufacturers and dealerships seeking to promote their brands, new model releases and sales promotions.
AutoComment also offers auto dealers a fee-based subscription services that allows them to promote their cars to a targeted online audience. AutoComment ranked among the top five of China's automotive websites in terms of traffic in 2014, according to iResearch. In addition to its automotive business, Leftbrain also provides mobile phone and consumer electronics information to users through its Cellphone China platform.