Alibaba Group had a big win with its selling of its stake in Momo, a Chinese location-based mobile social networking service. The company unloaded its last stake of 5.78% in Momo and according to China Money Network, this came out to about $1 billion in profits.
China Money Network released a report that said Alibaba had invested about $25 million in Momo during 2012 and 2013. Th estake in the company had been around 20% when Momo went public in 2014.
At one point Alibaba was even interested in Momo as a take over target but that dwindled. With Momo shares rallying over 130% in the last year, Alibaba was quietly unloading their shares.
Based on the average share price of Momo during the period, China Money Network has calculated that Alibaba has made more than $1 billion from the sale.
Disclaimer: We have no position in Alibaba Group Holding Ltd (NYSE: BABA) nor Momo Inc. (ADR) (NASDAQ: MOMO) and have not been compensated for this article.