Alibaba Backed NetEase's Online Music Business Gears For Hong Kong IPO Worth $1B
- NetEase Inc's (NASDAQ: NTES) online music business Cloud Village Inc has revived its listing plans and aims to launch a Hong Kong initial public offering before 2021, the Wall Street Journal reports.
- Alibaba Group Holding Ltd (NYSE: BABA), Baidu Inc (NASDAQ: BIDU), and private-equity firm General Atlantic backed Cloud Village aims to raise $1 billion at a market valuation of $5 billion - $6 billion.
- Tencent Music Entertainment Group (NYSE: TME), rival Cloud Village Inc, operates a music-streaming platform like Spotify Technology SA (NYSE: SPOT).
- Cloud Village filed for an IPO in the city in late May before pulling up on August 9 amid a massive selloff in Chinese internet-technology stocks triggered by a regulatory crackdown.
- Cloud Village has resolved the data-security issues with the regulators.
- Cloud Village will likely remain a subsidiary of NetEase after going public. NetEase's stake would likely reduce from 88% to about 62.5% post listing.
- Price Action: NTES shares traded higher by 5.32% at $117.10 in the premarket session on the last check Tuesday.
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