|Alibaba buys Chinese e-commerce business Kaola for $2 billion|
|Author: CSEBA / SEEbiz / CNBC|
|7th September 2019|
|BEIJING - Alibaba said Friday it will acquire a cross-border e-commerce business unit, Kaola, from the Nasdaq-listed Chinese internet company NetEase for about $2 billion.|
Kaola sells imported products in China that include clothes, consumer electronics, and sports accessories. It is one of the biggest Chinese e-commerce sites focused on selling imported goods in the country, alongside Alibaba’s Tmall Global and JD.com’s JD Worldwide.
Alibaba said it plans for Kaola to continue operating independently under its current brand, but it will have a new leader at the helm. Tmall Import and Export General Manager, Alvin Liu, will take over as CEO.
With Tmall Global and Kaola, Alibaba will have a massive market presence in the cross-border e-commerce sector.
With Alibaba’s acquisition of Kaola and its investment into NetEase Cloud Music, NetEase can “further optimize its costs while Alibaba strengthens its leadership in cross border ecommerce,” Jefferies analysts wrote in a note on Friday.
China is one of the largest e-commerce markets in the world, with research firm eMarketer predicting in a June report that in 2019 the country will have $1.935 trillion in e-commerce sales, about three times more than the United States.
|27th October 2023|
|Former Chinese prime minister Li Keqiang has died, CSEBA expressed its condolences|