Chinese Internet giant Tencent announced today its e-commerce properties, including marketplaces Paipai (C2C) and QQ Wanggou (B2C), will be transferred to JD.com (or JD), the leading Chinese online retailer. Different from what we heard earlier, Tencent’s online retailer Yixun won’t be merged into JD right away. JD will hold a minor stake in Yixun after this deal and has the right to acquire the remaining stake in the future, according to the announcement.

Tencent will also buy 15% of JD outstanding ordinary shares for $214 million before JD IPO and 5% more on the post-IPO basis. JD has filed for IPO in the US to raise up to $1.5 billion.

Tencent promises to provide JD with the best resources on WeChat and Mobile QQ. The two companies will also cooperate on online payments. Martin Lau, president of Tencent, will join JD’s board of directors.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com