Why JD.com Stock Dropped Today
Shares of JD.com (NASDAQ: JD) fell 6.9% after Tencent (OTC: TCEHY) said it would distribute most of its stock holdings in the online retailer to its shareholders.
Tencent will pay a special dividend of more than 457 million JD.com shares to its investors. Tencent's shareholders will receive 1 share of JD.com for every 21 shares of Tencent that they own on Jan. 25, the record date for the transaction. Some shareowners in markets outside of China, however, may receive cash in lieu of shares.
These shares represent roughly 15% of JD.com's outstanding stock and 86% of Tencent's holdings in the company. They are valued at approximately $16 billion.
Source Fool.com
