Alibaba Group is buying Kaola, the import e-commerce platform owned by online gaming and entertainment firm NetEase, for about $2 billion and taking a minority stake in NetEase Cloud Music, the two Hangzhou-based firms said recently. In addition, Alibaba and Yunfeng Capital will together invest around $700 million in NetEase Cloud Music.

NetEase will remain the controlling shareholder of NetEase Cloud Music following the closing of this transaction. Kaola will continue to operate independently under its current brand, with Tmall import and export general manager Alvin Liu serving as Kaola’s new chief executive officer (CEO), according to an Alibaba press release.

“With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem,” Alibaba CEO Daniel Zhang said.

“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,” he said.

The deal will allow NetEase to focus on its growth strategy, investing in markets that allow us to best leverage its competitive advantages, NetEase CEO William Ding said. (DS)

Fibre2Fashion News Desk – India

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