After weeks of press reports, Alibaba may lastly approach a deal to purchase the cross-border e-commerce unit of NetEase, Kaola. Chinese tech news website 36kr reports that a deal can be announced as soon as this week and that money and shares are anticipated to be worth $2 billion.
Kaola will continue to operate separately, but will become part of the Tmall Global of Alibaba, establishing a huge cross-border e-commerce company. Tmall Global retained a market share of 31.7 percent at the end of last year, while Kaola had around 24.5 percent, much bigger than JD Worldwide competitors (11.5 percent), VIP International (9.7 percent) and Amazon (6 percent).
Caixin Global first revealed that Alibaba was planning to purchase Kaola on August 15 for $2 billion in money, but then the agreement was allegedly revoked after the businesses disagreed with the cost and other information.
36kr claims that Kaola employee stock options will be transformed into Alibaba stocks and that while the brand remains autonomous, Alibaba will set up a fresh CEO to replace present Kaola CEO Zhang Lei.
A spokesman for Alibaba said the business is not commenting on the rumors of the industry. There was no remark from NetEase. It is also anticipated that Alibaba will invest in NetEast Cloud Music, but this agreement is unrelated to the Kaola takeover.