Meituan: Acquisition Represents Commitment Toward Generative AI, but Cost and Benefits Unclear

On June 29, Meituan acquired an artificial intelligence startup company called Light Year for USD 233.7 million and agreed to assume liabilities of CNY 366.9 million (USD 50.7 million). As of June 29, Light Year had USD 285 million cash on its balance sheet, which implies that Meituan acquired Light Year for less than USD 1 million. While the acquisition does not change the composition of Meituan’s balance sheet much, it symbolizes Meituan’s entrance into the generative AI industry which is Light Year’s main focus.