News That Ali's Acquisition Of Netease Koala Negotiations Will Close At The End Of The Merger With Tmall International.

On the evening of August 13th, according to the WeChat public "LatePost" news, Alibaba is negotiating the acquisition of NetEase koala. The outcome of the negotiations is basically determined and details are being discussed. The purchase price is in the billions of dollars. After the transaction is completed, the NetEase koala will carry out specific business integration and cooperation with Tmall international.

The report on "LatePost later" also mentioned that at the beginning of this year, NetEase koala began to seek opportunities for sale / investment in the market. Since March, Ali has begun to engage in intensive contact with koala. A two tier investor familiar with ALI and NetEase said, "Ali has two possible reasons for acquiring NetEase koala: 1, after acquisition, Ali will occupy a leading position in the field of cross-border import of electricity providers, which can reduce unnecessary price wars and increase profits; 2, defensive acquisitions, and avoid buying more koalas."

In addition, "LatePost later" also said that NetEase cloud music and shrimp are discussing the merger.

Earlier, there were reports that NetEase koala was financing, the contact side may include Alibaba, spelling more business platform. "Now, we have not yet finalized the target." Earlier, in the snowball community, users posted that "NetEase koala will make a price of 2 billion dollars to sell to Alibaba."

In response to rumors related to financing, NetEase koala responded to the media, "we have no comment on rumors of market rumors." In addition, the NetEase "koala price $2 billion sold to Alibaba" rumors, the media separately to Ali, NetEase koala aspects to verify. Ali responded to the media, saying "no comment on market rumors". NetEase koala replied, "we do not comment on rumors of market rumors."

The NetEase has always been open to the introduction of external strategic investment. NetEase CFO Yang Zhaoxuan has said before that NetEase has an open attitude to the introduction of external strategic investment in the electricity business, and welcomes any strategic partner, especially at the commercial level. NetEase will consider introducing external strategic investors when the time is right. Related information shows that NetEase's music, education and other plate products have been financing.

In August 8th, NetEase released the two quarter earnings report in 2019, showing that its e-commerce business revenue was 5 billion 247 million yuan, an increase of 20.2% over the same period last year. However, the gross profit margin of NetEase's electricity providers improved to 10.9% during the quarter. From the four quarter of 2017 to now, the growth rate of NetEase koala net income has been declining, from 175.2% to 20.2%.

Before working with ALI, NetEase koala was exposed to merge with Amazon's overseas purchase business in China. However, at that time, both sides said they did not comment on the news, and then no new news came out. In April this year, Amazon announced that it will no longer operate China's domestic market business from July 18th and stop providing services to merchants.