Shopping Discussion

Newegg will be sold to Chinese company

  • Last Updated:
  • Oct 26th, 2016 5:05 pm
[OP]
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Feb 20, 2007
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Newegg will be sold to Chinese company

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.
More info at http://www.pcgamer.com/newegg-discusses ... ment-deal/

Looks like the Chinese are coming in and buying up everything.
14 replies
Sr. Member
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Nov 28, 2011
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Markham
Well its not like their customer support can get any worse
Deal Fanatic
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Oct 22, 2007
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London
They will also be changing their name to 1000 year old Egg.
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Nov 29, 2015
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Brossard, QC
We don't care about the ownership of NewEgg. We only focused on deals here. Haha...
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Ottomaddox wrote:
Oct 18th, 2016 11:22 am
They will also be changing their name to 1000 year old Egg.
LOL! They should have a new name as "OldEgg"....
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Mar 31, 2007
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If one of their changes is free shipping on $XX at Newegg.ca then I'm all for it.
:arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd: :arrowd:
Deal Expert
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Oct 26, 2003
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i was informed newegg was already owned by chinese, i guess this means the parent holding company is also chinese
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GTHA
divx wrote:
Oct 19th, 2016 7:04 pm
i was informed newegg was already owned by chinese, i guess this means the parent holding company is also chinese
Owned by which Chinese company?

Newegg was founded by Fred Chang, a U.S. immigrant from Taiwan, in 2001.
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Sep 18, 2012
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ETOBICOKE
Ottomaddox wrote:
Oct 18th, 2016 11:22 am
They will also be changing their name to 1000 year old Egg.
Your ancestors egg!
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Feb 21, 2002
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No surprise, Chinese own the world

most our computer motherboard and video cards come from China, Taiwan

Also most items in our store Made in China

cheers.
Deal Fanatic
Feb 2, 2011
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Toronto
I hated them anyways.

Tried buying a new monitor from them and it was limited stock, purchased, CC denied since it was suspicious, corrected it and confirmed multiple times with Newegg and got the order restarted, then it got cancelled the next day. Spent over 6 hours on the phone with them trying to fix the issue and the best they could do was credit me $10 and tell me to order again, but now the item is OOS, so they tell me to just wait and hope it comes back.

Terrible site. Now I know to stay away.
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SyncOn wrote:
Oct 25th, 2016 6:38 am
What I don't understand is the fragment "a bid towards controlling an effective majority in the American company's shares". Specifically, the 'shares' bit. I am under the impression that Newegg is a privately-held company. They intended to do an IPO at some point, but ended up cancelling it. I think... If so, then there shouldn't be any shares, and the article may be either slightly sloppy or worse. And anyway:

"All your egg are belong to us"
It's possible for private investors and employees to own shares in a private company. Buying and selling would be obviously be more complex.
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tk1000 wrote:
Oct 19th, 2016 8:24 pm
divx wrote:
Oct 19th, 2016 7:04 pm
i was informed newegg was already owned by chinese, i guess this means the parent holding company is also chinese
Owned by which Chinese company?

Newegg was founded by Fred Chang, a U.S. immigrant from Taiwan, in 2001.
It was backed by Chinese investors from the start. Starting from at least 5 years ago, product managers have slowly been replaced by ones working in China. Anyone who works in this industry knows someone at Newegg and can tell you it's a now a shell of a company.

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