Chinese E-Sellers Alibaba, Kaola Clam Up on Rumored Buyout

ZHANG YUSHUO

(Yicai Global) Aug. 15 — Chinese tech and e-commerce leviathan Alibaba Group Holding and a Chinese internet technology company NetEase’s Kaola online sales platform have both stayed tight-lipped over the former’s rumored pending stock purchase or acquisition of the latter, tech media 36Kr reported yesterday.

“No comment on the market rumor,” was their brusque retort.

Multiple media have brought more details to light, though the pair neither denied nor confirmed the deal. Talks have basically concluded between Alibaba and Kaola, Chinese WeMedia Latepost8 reported on Aug. 13. The former will acquire the latter for several billion dollars and Kaola will integrate specific businesses and cooperate with Alibaba’s Tmall Global cross-border online retail emporium after the deal closes.

Kaola tried to touch Alibaba and Pinduoduo for funding, the 21st Century Business Herald reported on the same day, citing an anonymous investor, but Pinduoduo later denied any intention to buy into Kaola.

Kaola reportedly offered to acquire Amazon.Com China’s Haiwaigou trans-national sales division last year, but their negotiations broke down when the two failed to agree on price. Kaola and Amazon.Com are said to have swapped stock in February.

Formed in early 2015, NetEase Kaola mainly plies cross-border e-commerce, but broke into the integrated online shopping market in June last year, selling both imported and domestic goods.

China’s trans-frontier import and retail online market was CNY115 billion (USD17 billion) in the fourth quarter, up 36 percent from the one before, data from research firm Analysys show.

Tmall Global held to first place with a nearly 32 percent slice of the pie, followed by Kaola at 25.5 percent. Haiwaigou came in fifth with 6 percent.

Editor: Ben Armour