Uber, Didi Chuxing Deal Is 'Win, Win,' GGV Capital's Tung Tells CNBC

NEW YORK (TheStreet) -- The Uber Technologies, Beijing-based Didi Chuxing $35 billion investment deal is a "win, win" for the rivaling taxi app companies, GGV Capital's Hans Tung said on CNBC's "Squawk Alley" Monday.

This morning it was announced that Uber agreed to give its Chinese operations to Didi Chuxing in exchange for a 17.7% stake in the company, equivalent to 5.89% of preferred shares. Uber backers such as Chinese language Internet search provider Baidu  (BIDU) will receive 2.3%.

E-commerce is not typically a "sensitive category for the Chinese government to open up to" so partnering and investing in a "local category leader" like Didi Chuxing makes a lot of sense for San Francisco-based Uber, Tung commented.

The deal makes "the alliance that much stronger for both sides," he continued, noting that it will particularly make Uber more aggressive in global markets outside of the U.S.

Shares of Baidu are rising by 1.74% to 162.38 this afternoon.

Separately, TheStreet Ratings rated Baidu as a "buy" with a score of B-.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: BIDU

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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