Chinese provider of internet services NetEase has announced its import e-commerce platform Kaola is set to be taken over by major Chinese conglomerate Alibaba.
Monetary values of the deal are said to be approximately $2billion – with the B2B2C cross-border platform Kaola continuing to operate independently under its current brand.
“Alibaba is confident about the future of China’s import e-commerce market, which we believe remains in its infancy with great growth potential. We welcome Kaola to the Alibaba family and value NetEase’s contributions in incubating an e-commerce platform with strong import capabilities.” noted Daniel Zhang, CEO, Alibaba Group.
“With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem.”
“Alibaba also looks forward to becoming a partner in the future development of NetEase Cloud Music and exploring innovative collaboration in the digital entertainment space.”
Tmall import and export general manager Alvin Liu will serve as Kaola’s new CEO.
Furthermore, in association with Yunfeng, the Chinese giant is set to invest $700 million into NetEase Cloud Music in its latest round of financing – subject to “certain closing conditions.”
“We are pleased to have found a strategic fit for Kaola within Alibaba’s extensive ecosystem, where Kaola will continue to provide Chinese consumers with high-quality import products and services,” added said William Ding, CEO, NetEase.
“ At the same time, the completion of this strategic transaction will allow NetEase to focus on its growth strategy, investing in markets that allow us to best leverage our competitive advantages.
“We remain fully committed to offering our users best-in-class and differentiated online content born from our relentless drive for craftsmanship and innovation.
“As the controlling shareholder of NetEase Cloud Music, we will continue to fully support the growth of this business, helping it to realize its strategic goals in the music industry.”