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Alibaba pledges to keep GoTo stake in return for cloud service purchase
The agreement came as GoTo’s shares have taken a significant hit since its initial public offering in April 2022, plunging 80.8 percent from the listing price of Rp 338 (2 US cents) to just Rp 65 by Tuesday’s market close.
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The logo of Alibaba is seen on July 6, 2023, at the World Artificial Intelligence Conference (WAIC) in Shanghai, China. (AFP/Wang Zhao)
H
omegrown tech giant GoTo has inked a memorandum of understanding (MoU) with its key shareholder, Chinese e-commerce powerhouse Alibaba, to integrate its cloud infrastructure into the Alibaba Cloud over the next five years.
The agreement, signed on Sept. 13, will require GoTo to migrate its existing cloud services to the Alibaba platform starting next month. In exchange, Alibaba has committed to maintaining its current 7.37 percent stake in GoTo, equating to roughly 88.5 billion shares.
GoTo emphasized that this move is expected to streamline operations, improve efficiency and lower operational costs.
“This partnership marks a significant milestone in our journey to create a more inclusive and resilient digital economy in Indonesia,” GoTo Group CEO Patrick Walujo said in a statement on Monday.
“It also underlines our commitment to work with partners in a way that delivers the long-term sustainable growth that returns value to our shareholders,” he added.
Since establishing its cloud infrastructure in Indonesia in 2018, Alibaba has built three data centers supporting industries like finance, retail, gaming, transportation, education and logistics.
“We want to empower businesses of all sizes in Indonesia and foster innovation to drive long-term growth,” added Selina Yuan, vice president of Alibaba Group and president of international business at Alibaba Cloud Intelligence.
