From several weeks, Chinese multinational conglomerate holding company, Alibaba, has been in long talks to acquire e-commerce unit of NetEase, Kaola. At last, the deal seems to be finalizing probably within this week, according to the report published by the Chinese tech news website 36kr. The deal is expected to close at $2 Billion, which Alibaba would have to pay in cash and shares.
Even after the acquisition, Kaola will operate independently but as a crucial part of Tmall Global, Alibaba’s subsidiary. The deal, if accomplished, would significantly expand Alibaba’s e-commerce business. In late 2018, Tmall Global and Kaola were the strong contenders holding significant e-commerce market share as compared to the rivals VIP International, JD Worldwide, and Amazon in China.
Alibaba’s plan regarding Kaola acquisition for $2 Billion was first reported by Caixin Global on August 15. However, at that time both the companies did not agree upon the deal and the agreement was reportedly canceled.
NetEase did not comment on the report and Alibaba spokesperson told, “The company doesn’t respond on rumors.”
On a related note, SoftBank-backed fintech startup, Kabbage, that has been managing to approve financial support of up to $250,000 to SMEs. The fintech firm determines the loan terms using AI-algorithms. Now, the startup has planned to acquire an asset to expand its own data inventory as it aims to spread its business into further SMB (small and medium business) financial services. This week, Kabbage announced that it has purchased a marketing tech firm, Radius Intelligence. The recently acquired firm has assembled a database comprising piles of information on nearly 20 Million SMBs established in the US.
Terms mentioned in the agreement are not yet disclosed. However, the acquisition phase comes during an unstable phase for Radius. Last year, the marketing tech firm joined forces with its strong contender Leadspace, and after three months, it silently overturned the deal.
While Demetrius holds a Bachelor’s Degree in Business Administrations, he has a deep understanding of the business world. With a huge 6 years of experience in this realm, Demetrius has gained profound knowledge and proficiency in writing news on various key topics in the domain including acquisitions & mergers, product launches, market trends, trading, and so on. With his exceptional leadership qualities, he carries out all the duties as the Head of the Business Department very tactfully. In any critical situation, his patience and decision-making abilities show the Carib World News’s Business-section team a ray of hope to come out of it efficiently.