Alibaba Backed NetEase's Online Music Business Gears For Hong Kong IPO Worth $1B

Benzinga2021-11-16
  • NetEase Inc's 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 , Baidu Inc, 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, rival Cloud Village Inc, operates a music-streaming platform like Spotify Technology.
  • Cloud Village filed for an IPO in the city in late May before pulling up on August 9.
  • Cloud Village has resolved the data-security issues.
  • 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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