Mobike Sells For $2.7B After Raising $900M+

Morning Report: Mobike sells to Meituan-Dianping, another company backed by Tencent. This changes the landscape for the world’s deeply unprofitable bikesharing companies.

Hot damn, at least one bikesharing company won’t flame out and go the way of Bluegogo, a previously-operating bike rental company that is now best remembered for its accidental creation of dystopian photoshoots.

Yes, Mobike has been sold to Meituan-Dianping for a reported $2.7 billion (sans debt), giving it a roughly three-times multiple on raised capital. The startups accrued over $900 million in capital from external parties during its life, including Chinese giant Tencent according to Crunchbase.

The deal is in many ways an inside play. Tencent took part in both of Meituan-Dianping’s multi-billion dollar rounds, meaning that it was a large shareholder in each corporation. The union has some potential merit. CNBC calls Meituan-Dianping “China’s largest provider of on-demand online services,” and Mobike is a company that rents bikes on-demand.

If the latter company will wind up being worth $2.7 billion we’ll find out later, but the deal isn’t Intel buying Blue Apron. Or Microsoft buying Uber. Or Yahoo buying anything.

Jokes aside, the M&A move comes during a very hot period for bike and scooter rental companies. LimeBike and Bird in the U.S. domestic market are raising quickly and deploying lots of hardware in direct competition, including literally on the street outside of our offices. And Uber is potentially consuming JUMP bikes for $100 million or more.

The huge Mobike deal implies that there will be more. Especially as ofo, backed by Tencent rival Alibaba, is still out there by itself. Perhaps it will want to find a new home as well.

From The Crunchbase Daily:

Mobike sold for $2.7B

• China’s Meituan Dianping confirmed that it is acquiring bike-sharing pioneer Mobike. Media reports pegged the purchase price at $2.7 billion. Previously, Beijing-based Mobike had raised more than $900 million from Tencent and a host of venture and strategic investors.

Jump Bikes weighs Uber sale or new round

• Another bike-sharing acquisition could be coming soon. Jump Bikes, a provider of dockless electric bike rentals, has reportedly held discussions with Uber about a potential deal worth over $100 million. The New York-based company is also considering another venture round.

Spotify IPO starts on up note, turns down

• Shares of Spotify fell to around $145 in early trading this morning, after debuting a day earler at $169. Even with the dip, however, the stock is still trading above recent valuations in private markets, delivering some validation for the company’s unconventional decision to go public via direct listing.

Alisports raises $190M Series A

• Alibaba’s sporting subsidiary, Alisports, confirmed its raise of a $190 million Series A led by Yunfeng Capital. This giant round adds to the growing number of large Series A financings for China-based startups.