Bulletin
Investor Alert

London Markets Close in:

Market Pulse Archives

Sept. 5, 2019, 8:15 p.m. EDT

Alibaba and NetEase strike a $2 billion deal and investment

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Netease Inc. ADR (NTES)
  • X
    Alibaba Group Holding Ltd. ADR (BABA)

or Cancel Already have a watchlist? Log In

By Jeremy C. Owens

Two of China's most valuable public tech companies announced a deal Thursday evening that will shift one business from NetEase Inc. /zigman2/quotes/201683625/composite NTES +1.61% to Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA +0.43% and shift a lot of money the other way. Alibaba agreed to acquire an import e-commerce business from NetEase, Kaola, for about $2 billion, and invest $700 million into NetEase's streaming music business, NetEase Cloud Music. Alibaba will continue to operate Kaola as an independent business, with the general manager of its Tmall business taking over as chief executive of the business. NetEase will retain control of its music business, with the investment from Alibaba being part of a round of financing. With the NetEase segment that most closely rivaled Alibaba's core business now in the hands of Alibaba, the two companies said the deal "paves the way for the two internet companies with deep roots in Hangzhou to further identify and explore business collaborations." The deal was announced just following the end of the extended trading period Thursday afternoon; at the end of trading, Alibaba was worth $465.9 billion and NetEase had a market cap of $34.7 billion.

/zigman2/quotes/201683625/composite
US : U.S.: Nasdaq
$ 290.91
+4.61 +1.61%
Volume: 433,927
Oct. 16, 2019 11:09a
P/E Ratio
29.26
Dividend Yield
0.91%
Market Cap
$36.63 billion
Rev. per Employee
$559,825
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 176.04
+0.75 +0.43%
Volume: 3.89M
Oct. 16, 2019 11:09a
P/E Ratio
31.47
Dividend Yield
N/A
Market Cap
$456.38 billion
Rev. per Employee
$781,259
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.