Technology: Alibaba reportedly near finalizing a deal to acquire NetEase's cross-border e-commerce unit - deal to close: Chinese take over AC Milan - PressFrom - US

TechnologyAlibaba reportedly near finalizing a deal to acquire NetEase's cross-border e-commerce unit

12:35  04 september  2019
12:35  04 september  2019 Source:

Baidu’s $66 Billion Dive Knocks It Out of China’s Top 5 Internet Companies

Baidu’s $66 Billion Dive Knocks It Out of China’s Top 5 Internet Companies Baidu Inc. has dropped off the list of China’s five most valuable internet companies, underscoring the challenges facing the search giant from a weakening economy to intensifying competition. NetEase Inc., China’s second-largest gaming house, has overtaken Baidu in market value after posting better-than-expected quarterly earnings last week. Shares of NetEase have gained 11% this year, while Baidu’s plunged 40%. The latter company, once touted as a member of China’s internet triumvirate alongside Alibaba Group Holding Ltd. and Tencent Holdings Ltd.

NetEase ’ s cross - border e - commerce site Kaola and US e - commerce giant Amazon reportedly have been in talks over a possible merger, according to Chinese According to the report, the companies signed a deal to combine China cross - border businesses in a stock-for-stock merger in late 2018.

Global retail major Alibaba Group Holding has expanded the footprint of its cross - border e - commerce initiatives globally. The company’ s e - commerce platforms, through collaborations with various governments and official trade agencies, will also use Cainiao’ s logistics network to assist small

After weeks of media reports, Alibaba may finally be nearing an agreement to acquire NetEase’s cross-border e-commerce unit, Kaola. Chinese tech news website 36kr reports that a deal may be announced as early as this week and is expected to be worth $2 billion in cash and shares.

Kaola will continue to run independently, but would become part of Alibaba’s Tmall Global, creating a massive cross-border e-commerce business. At the end of last year, Tmall Global held a 31.7% share of the market, while Kaola had about 24.5%, much larger than rivals JD Worldwide (11.5%), VIP International (9.7%), Amazon (6%).

Caixin Global first reported that Alibaba was planning to acquire Kaola for $2 billion in cash on August 15, but then the deal was reportedly called off after the companies disagreed on the price and other details.

36kr reports that Kaola employee stock options will be converted into Alibaba shares and that even though the brand will remain independent, Alibaba will put a new CEO in place, replacing current Kaola head Zhang Lei.

An Alibaba spokesperson said the company does not comment on market rumors. NetEase had no comment.

Alibaba is also expected to invest in NetEast Cloud Music, but that deal is unrelated to the Kaola acquisition.

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