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Ant Group cuts stake in Orbbec and Youon Technology amid investment shift
Ant Group has reduced its stakes in Orbbec and Youon Technology to shift focus on emerging technologies. Ant sold 8.82 million shares of Orbbec, retaining a 10% stake, while offloading a 6% stake in Youon. The moves aim to reallocate capital to earlier-stage investments, despite a financial struggle for Youon, which expects losses in 2024.
Key points
- Ant Group sold 8.82 million shares in Orbbec from Jan. 10 to March 14, 2025, raising RMB 556 million ($77 million).
- After the sale, Ant remains Orbbec's second-largest shareholder with a 10% stake.
- By reallocating from long-term investments to early-stage opportunities, Ant Group aims for higher returns.
- Ant gained over RMB 775 million ($108 million) from these divestments.
- Ant sold a 6% stake in Youon Technology for RMB 219 million ($30 million), reducing its stake from 7.86% to 1.43%.
- Youon Technology is forecasted to lose RMB 55 million to RMB 80 million ($7.6 million to $11 million) in 2024.
Why it matters
- Ant Group's shift reflects a broader trend among investors to prioritize emerging technologies, seen in trends such as AI, blockchain, and sustainable tech.
- Investments in struggling tech firms have been scrutinized as industries transition amid economic uncertainties, impacting public perceptions and stock valuations.
- 2025 IT trends suggest further growth in AI and machine learning, compelling firms to pivot strategies towards innovative startups.
Ant Group’s divestment strategy highlights a significant shift in investment focus towards emerging tech, underlining the evolving landscape in tech investments and the pressures from ongoing market changes.