By Tang Guhan
China’s ride-hailing company, Didi Chuxing has been reported to have approached the bike-sharing company, Ofo bike about an acquisition.
Some of China’s online media have reported that the negotiations between Didi and Ofo are drawing to a close with a final price of $3 billion this month.
Didi has declined to comment on the above report, and Ofo has denied the validity of the news.
China’s State-run Shanghai-based newspaper, The Paper has reported that Didi did meet with Ofo to discuss the potential takeover of the latter and the price it offered was extremely low.
The price Didi offered has been moving downward and compared with the takeover price of Mobike by Meituan Dianping, the founder of Ofo thinks that the $3 billion offer is humiliating.
Ofo’s counterpart Mobike was acquired by the Meituan Dianping for $2.7 billion, according to its prospectus in April this year.
People who are close to the matter noted that the deal with Ofo would probably not been conducted similar to that of Mobike. “Stakeholders are still wrestling with each other right now. Alibaba may also have his own demand.”
This is not the first time that Didi has expressed its intention of taking over Ofo. In April, it had been reported that it wanted to push forward with the purchase. Moreover, Ofo has always reiterated that it remains independent under support from it various investors.
However, Ofa has tried to improve its commercial practices. by rolling out advertisements for other companies on its bikes.
Ofo has also exited from the Australian, German and US markets. The logic behind these moves, which Ofo has explained, was that it would focus its attentions in several locations and achieve business success in those areas.
