Friday, October 14th 2016
Newegg Now Owned by Chinese Company
The Wall Street Journal's earlier report about an expected record-setting 2016 in regards to chinese investment in the United States was right. Newegg Inc., one of the most popular online tech-related retailers, is now reportedly owned by chinese company Hangzhao Liaison Interactive Information Technology Co., Ltd. (Liaison Interactive).
After September's reports of a significant investment from the Chinese company on Newegg, which would allow the California-based company to "accelerate the pursuit of the company's strategic initiatives" and into high-growth markets such as eSports, VR (Virtual Reality) and AR (Augmented Reality), it now appears that the investment was much more than a simple capital infusion: it was a bid towards controlling an effective majority in the American company's shares.
The deal, with a value estimated around 17.7 billion yuan (around 2.63 billion dollars; higher than some countries' GDP), will give Liaison Interactive control of 55.7% of the California-based company. As a result, Newegg thus becomes one of Liaison Interactive's subsidiaries.
The deal is expected to aid Liaison Interactive in bolstering its global competitiveness, allowing for a gigantic expansion into the American market. The company praised Newegg's recognizable brand and strong consumer confidence. Liaison Interactive expects Newegg to become an important part of the company's liquidity channel through its hardware and software offers, thus complementing the China-based company's product channels. As always, in the wake of this acquisition, changes are expected in Newegg's overall structure, in either its organization, personnel, business, financial and/or management fields.
Source:
UDN News
After September's reports of a significant investment from the Chinese company on Newegg, which would allow the California-based company to "accelerate the pursuit of the company's strategic initiatives" and into high-growth markets such as eSports, VR (Virtual Reality) and AR (Augmented Reality), it now appears that the investment was much more than a simple capital infusion: it was a bid towards controlling an effective majority in the American company's shares.
The deal is expected to aid Liaison Interactive in bolstering its global competitiveness, allowing for a gigantic expansion into the American market. The company praised Newegg's recognizable brand and strong consumer confidence. Liaison Interactive expects Newegg to become an important part of the company's liquidity channel through its hardware and software offers, thus complementing the China-based company's product channels. As always, in the wake of this acquisition, changes are expected in Newegg's overall structure, in either its organization, personnel, business, financial and/or management fields.
116 Comments on Newegg Now Owned by Chinese Company
I'm surprised to see that they have such a bad reputation. I get more hassle from Amazon about returns.
Though I do have (and have had for a while) Newegg Premier for free. I know that Premier gives me free return shipping, and waives the restocking fee.
But I too hope that new ownership doesn't change things too much on the customer-facing side of the company.
I've still been having good fun with their deals/rebates, and avoiding the sales tax that Amazon charges in my state. Amazon still hasn't been able to match Newegg's pricing, or its search capability, or its deal emails. And I have much more confidence in the specifications and product details listed on Newegg.
First order. Is that an IBM DeathStar? Maybe... mine didn't die though. Had a fan-cool HDD bay which wasn't nearly as common as it is today.
Nostalgia aside, this move doesn't help. It also doesn't hurt much either, as I've been with other stores for several years now. Like previous posts, just don't have the same feels anymore.
I contacted Amazon for a replacement, and they wouldn't even give me that. They told me it was past the return period(14 days apparently) and there was nothing they were willing to do. I have to deal with Toshiba to get it fixed.
When calling Newegg's Premier support line, I've gotten them to replace or refund items that were past the 30 day return limit. I've never had an issue like this with Newegg's Premier support. Amazon's support on the other hand has burned me a few times.
You get what you pay for.
What more do you want? Perhaps for them to bake you a cake and ship it free too?
Your comment, in the context of the actual situation, just seemed vacuous and worth responding to. Do better than that.
Where do you think your electronics (all of them these days) come from anyway?
I have both and don't see the Amazon Prime as superior to it. Advantage: Neither.
Another nail in his coffin. :rolleyes:
Also, Newegg Premier also gives you a special support number to call which has almost no wait time. But Prime gives you digital video streaming, audio, and ebooks.
It still has that old-school 1980s sign
Anyway! I built my first computer using Newegg but have since switched more towards Amazon as Prime shipping usually makes the item cheaper, that or I buy used components on eBay for much cheaper than retail msrp.