Briefing: Didi executive says Ofo financing rumors are ‘foolish’

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滴滴收购ofo文件曝光?滴滴李敏:10月9日就辟过谣了 – Sina Tech

What happened: Didi Vice President Li Min has denied rumors that the company planned to invest $500 million in bike-rental firm Ofo’s Series F in August, calling the comments “foolish.” Min made the remarks on popular messaging app WeChat after the claims began circulating on various Chinese media websites, citing anonymous sources and publishing alleged financing documentation.

Why its important: The Chinese bike-sharing firm has been teetering on the edge of bankruptcy following retreats from international markets and rumors of layoffs. As Ofo’s story has gone viral on Chinese social media, the public is looking for answers relating to what killed the failing unicorn. Pony Ma, CEO of Tencent, commented on one of his employee’s WeChat posts, indicating that one significant reason for the company’s failure was veto rights. Ofo’s investors, mainly Alibaba and Didi, have subsequently been suspected by netizens of standing as barriers to the management of the company by using their veto rights.