Alibaba Buys NetEase's Import E-Commerce Platform Kaola For About $2 Bln

(RTTNews) - China-based internet technology company NetEase, Inc. (NTES) announced Thursday that its import e-commerce platform Kaola has been bought by Chinese e-commerce giant Alibaba Group Holding Limited (BABA) for about $2 billion.

Following the deal, Kaola would continue to operate independently under its current brand, with Tmall Import and Export General Manager Alvin Liu as its new CEO.

Further, the companies have entered into a definitive agreement, under which Alibaba, together with Yunfeng, would invest approximately $700 million in NetEase Cloud Music in its latest round of financing.

The completion of this transaction is subject to certain closing conditions. NetEase will remain the controlling shareholder of NetEase Cloud Music following the deal closure.

Daniel Zhang, Chief Executive Officer of Alibaba added, "Alibaba is confident about the future of China's import e-commerce market, which we believe remains in its infancy with great growth potential. ...With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem."

William Ding, the Chief Executive Officer of NetEase, stated that the deals would allow the company to focus on its growth strategy, investing in markets that allow to best leverage competitive advantages.