Alibaba is negotiating to acquire Netease’s Kaola. The current negotiation results are basically confirmed, and specific details are being discussed. The purchase price is in the multi-billion-dollar range. After the transaction is completed, NetEase Kaola will integrate and cooperate with Tmall International.
At the beginning of this year, NetEase Kaola has begun to seek sales/investment opportunities in the market. Since March, Ali began intensively contacting Kaola.
The background of NetEase Kaola’s acquisition is that the previous negotiations between NetEase Kaola and Amazon’s overseas purchase business failed. NetEase Kaola had intended to acquire Amazon’s overseas purchase business. The negotiations lasted for several months and were initiated and promoted by NetEase. The two parties may adopt a share swap method.
Due to the funding of the Kaola and the high price of Amazon, the final transaction did not take place. Since then, the direction of Kaola’s asset restructuring has shifted from buying to selling.
The slowdown in revenue growth and the increase in losses due to the decline in gross profit margins are major problems Netease e-commerce is facing.
In response to the rumors of “Ali’s acquisition of Netease Kaola”, Ali and Netease both said “no comment.” As of press time, Netease’s market value is 30 billion US dollars, and Ali’s market value is 414.7 billion US dollars. (Source: Late Post)