LightInTheBox (LITB) Forms Strategic Partnership with Baidu Dianxin
Beijing, China based LightinTheBox Holding Co. Inc. was originally founded in 2007 and is a multinational online retailer offering apparel, small accessories and gadgets, as well as home and garden products through its websites, LightinTheBox.com and MiniInTheBox.com among others.
Shares of the LightinTheBox Holding Co. Ltd. (LITB) were up +1.16 or +15.38 percent in Tuesday's premarket after announcing a strategic deal with Baidu Dianxin. The deal with the wholly owned subsidiary of Baidu Inc. (BIDU) will explore global market opportunities. LightinTheBox stock closed at $7.54, up +0.64 or +9.28 percent in Monday's regular trading session.
Baidu Dianxin is a fully owned division of Beijing, China based Baidu, Inc. The company is involved in the creation of state of the art applications for Android devices. The company is best known for its mobile security, power saving and boosting apps: Baidu Mobile Security, DU Battery Saver and DU Speed Booster, which have been downloaded by 200 million users outside of China, with over 350 million users in the Chinese domestic market.
The strategic partnership will give LightinTheBox additional opportunities for marketing its services to global consumers through Baidu's search engine, while LightinTheBox will help Baidu Dianxin expand its mobile applications distribution.
Alan Guo, Chairman and Chief Executive Officer of LightInTheBox stated that, "We are very excited to have the strategic partnership with Baidu Dianxin to help explore global market opportunities, this is a great example of two Chinese Internet companies working together to expand in global markets.
Zhang Lei, Chief Executive Officer of Baidu Dianxin said that, "We believe there will be more Chinese Internet and mobile companies going global in the future. The partnership between Dianxin and LightInTheBox is very mutually beneficiary, and we hope our partnership can set a great example for all future collaborations among Chinese companies with a global ambition .
The deal will improve Baidu's capability in competing with rival, Alibaba Holdings (BABA). Alibaba announced a deal earlier this month with Costco Wholesale (COST), which will allow the Chinese company to sell Costco products through its Tmail Global platform.
In late September, LightinTheBox stock surged after the company announced that it expects third-quarter revenue to be between $94 million and $96 million, compared with a previous range of $92 million to $94 million. The company is expected to release its third quarter earnings on November 19th.
LightinTheBox stock is recovering from a decline which took the stock down from an all time high of $22.21 made in August of 2013 to its current 52 week low of $4.61. With news of the new partnership with Baidu Dianxin, the stock has already begun to rally. Next week's earnings release will be crucial if the stock is going to extend its gains.
Other News About LightInTheBox
LightInTheBox Holding Co., Ltd. Stock Added to NASDAQ Golden Dragon China Index
Company's stock was added to the index on September 22nd.
LightInTheBox Settles Class Action Lawsuit
Company settled all claims in the U.S. class action suit.
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