NetEase Kaola and Alibaba Group made a thrilling announcement that could change the cross-border e-commerce landscape in China.
A multi-million-dollar acquisition
NetEase Kaola has been acquired by the Alibaba Group for a whopping $2 billion. The platform will now be integrated within Tmall, the international-focused e-commerce platform from Alibaba, which will now become the largest such business in China. Media reports have been suggesting a possible acquisition between the two companies for weeks and today’s announcement cemented the deal. Reports also suggested that talks were sabotaged last month when the two companies couldn’t agree on the transaction details.
According to the terms of the deal, Kaola will continue to work as an independent business. However, its CEO Zhang Lei will be replaced by Alvin Liu, the Import and Export general manager at Tmall. Note that Tmall Global is the largest cross-border e-commerce platform in China holding 31.7% market share, followed by Kaola, which commands 24.5% market share. With this deal, Amazon China, VIP International, and JD Worldwide will be left far behind in the competition. Interestingly, Amazon China was reportedly trying to woo NetEase to merge Kaola with its local business.
Good news for NetEase
Alibaba founder Jack Ma will be investing $700 million into NetEase Cloud Music via Alibaba and his investment firm Yunfeng. With the latest fundraise in the music streaming service, NetEase will continue to be the controlling shareholder while Alibaba will hold a minority stake.
William Ding, the CEO of NetEase wrote in a press release that Kaola was a strategic fit into the Alibaba ecosystem. With this deal, Kaola will continue to bring their import services to the users, while NetEase will find space to grow. Alibaba Group CEO Daniel Zhang also commented on the acquisition and said that the import e-commerce market is still in its nascent stages and comes with explosive potential for growth.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account