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The transaction values Starbucks China at approximately $4 billion, yet industry insiders point out that Starbucks estimates its total Chinese retail business at over $13 billion. Boou Capital paid $2.4 billion for its 60% stake, gaining the rights to the majority of profits. Analysts suggest this deal might have been an undervaluation, as some believe Starbucks China was sold at a bargain price, possibly due to the company's struggling performance in the region.
Amid this pivot, Starbucks has also announced the closure of its first store in Sani Province, located in Taan city, after 12 years of operations. Since 2013, nearly 20 flagship stores across China have shuttered — underscoring the company's retreat from an initially booming market.