From the AFR:
Telstra’s decision to float Chinese car sales website Autohome will cement a key strategic shift in the telecom group’s Asia strategy.
Chief executive David Thodey is gradually unwinding the investments in Chinese web sites made under former boss Sol Trujillo in favour of a new approach centred around cloud computing and internet services.
The proceeds from selling shares in Autohome, which will be listed on the New York Stock Exchange,will be funnelled back into the international operations by investing in technology, product development and expanding sales and marketing.
Separately the SMH is reporting that the site could be worth as much as $1 billion. And The Oz recounts:
Telstra paid $37 million to lift its stake in Autohome by 11 per cent last year, valuing the entire business at about $336m.
The telco bought the business in 2008 when former chief executive Sol Trujillo paid $76m for a 55 per cent stake in Sequel Media, which owned Autohome and technology retail websites IT168.com and PCPop.com.
That’s a handy return. I have to admit that I have never even heard of this investment. In a world largely devoid of Australian services investment in Asia it’s a good news story.
