Alibaba has acquired Kaola for $2 billion
Alibaba has acquired NetEase's import e-commerce platform for $2 billion in a bid to further boost its import service for its Chinese customers.
The deal will help further build the company's import service in China
Stocks impacted: Group Holding Ltd. (BABA), NetEase (NTES)
The deal hands Alibaba the biggest Chinese online marketplace for foreign brands after its own Tmall Import and Export. Alvin Liu has been named as Kaola’s new CEO, replacing Zhang Lei, but Kaola will continue to operate independently under its own brand. For NetEase, selling its low-margin Kaola platform would allow the company to focus on its bread-and-butter gaming business. Also, Alibaba and Yunfeng Capital will pour $700 million into NetEase Cloud Music. Earlier this year, the company announced it was opening Alibaba.com, its B2B e-commerce platform, to US sellers for the first time. Alibaba stocks closed 2.6% higher on Thursday.
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