NetEase in China Relaunches SEO Plan for Music Streaming App, IT News, ET CIO

Hong Kong: Chinese gaming giant NetEase has relaunched plans to list its music streaming company in Hong Kong after it was initially suspended following Beijing’s regulatory crackdown on big tech companies.

Cloud Village is one of China’s most popular music apps, alongside a similar service provided by market-dominating rival Tencent.

NetEase filed a new preliminary prospectus with the Hong Kong Stock Exchange on Tuesday evening, signaling its intention to list Cloud Village, but without specifying when the listing would take place.

Bloomberg News said NetEase hopes to raise around $ 500 million, about half of what it initially hoped its initial takeover plans were first announced earlier this year.

The proposals were scrapped in August as China unveiled a dizzying series of measures against big tech companies that boosted their stock prices and undermined investor confidence in the industry.

The Chinese government has embarked on a massive crackdown on the wider tech sector over the past year, citing concerns that companies are becoming too big and powerful.

Saying that kids are spending too much time playing online games, regulators have also targeted the huge gaming industry with new age and play time restrictions, while the approval of new titles has slow motion.

In July, regulators ordered Tencent to drop its exclusive licensing deals with major record labels, a move that would benefit its smaller competitors, including Cloud Village.

According to the preliminary prospectus, Cloud Village increased the number of monthly music users to 185 million in the first six months of 2021, while revenue increased 61% to $ 501 million.

The company remains in the red in part because of the costs associated with its fierce rivalry with Tencent.

NetEase operates a Yahoo-style site offering email, news, and shopping services in addition to its huge PC and mobile gaming arm.

(Bloomberg News contributed to this story)

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