Chinese online retail giant Alibaba has moved to acquire a minority stake in the NetEase Cloud Music streaming service as part of a $2 billion purchase of NetEase’s e-commerce unit Kaola, the two companies announced late Thursday.
Alibaba, along with Yunfeng Financial, an investment group backed by Alibaba founder Jack Ma, have entered into an agreement to invest approximately $700 million in NetEase Cloud Music as part of its latest funding round. The stake acquisition is pending completion of certain closing conditions, they said.
Founded in 2013, NetEase Cloud Music boasts over 800 million registered users, but there’s no confirmation how many are active on a monthly basis. The streaming service partnered with Alibaba's own service, Xiami, last year in an effort to share their content libraries.