Rising home prices and conservative borrowing have today's homeowners sitting on a record amount of potential cash. Today's mortgage holders saw their home equity increase by...Real Estateread more
Stocks have been grinding sideways, but technical analysts say once they breakout, the move to the upside could be powerful.Market Insiderread more
The fresh round of cuts is on top of an estimated 4,500 temporary layoffs GM and its suppliers handed out to employees as of Friday.Autosread more
Here are the most important things to know about Tuesday before you hit the door including earnings from Nike and likely updates on Trump's trade deals.Marketsread more
The Mac Pro is the only major Apple computer to be assembled in the United States. Most of Apple's products, including the iPhone, are assembled in China and are facing tariff...Technologyread more
Stocks were barely changed. American Express gained, but Netflix was a notable laggard.Marketsread more
Think about the last TV show you recommended to a friend, or the last one that was recommended to you. Odds are, it was from a premium service like HBO, Netflix or Amazon.Entertainmentread more
SpaceX is deep into development of its Starship rocket, with recent updates from CEO Elon Musk showing the first one under construction.Investing in Spaceread more
The new wireless earbuds, codenamed "Puget," are expected to come with an accelerometer and be able to monitor things like the distance run, calories burned, and pace of...Technologyread more
Greta Thunberg, a 16-year-old Swedish environmental activist, delivered a powerful message at the United Nations Climate Action Summit on Monday.Environmentread more
SoftBank wants to push Neumann out of the CEO role ahead of the IPO.Technologyread more
* Deal expected to boost Alibaba's access to wealthy clients
* Alibaba, PE firm Yunfeng to invest in Netease's music service (Adds background, data, analyst comment)
SHANGHAI, Sept 6 (Reuters) - Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.
Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music.
The long-rumored Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies.
Kaola, launched by NetEase in 2015, aggressively targets shoppers in China by offering products from top brands such as Gucci, Shisheido and Burberry, primarily sourcing goods directly from suppliers to resell to consumers.
Its more curated product line up based on popularity ensures it a loyal consumer base of shoppers, whereas Alibaba's Tmall allows a larger range of overseas brands to launch and manage virtual storefronts on its platform, said Ker Zheng, who tracks China's online retail sector at consultancy Azoya.
"Kaola does not have to share user time or basket space with cheaper, non-imported products," said Zheng.
Kaola and Yanxuan, another NetEase-run line of private-label, company-branded goods, accounted for nearly half the gaming company's revenue in the June quarter.
NetEase does not break down sales from Kaola.
The Kaola deal will boost Alibaba's access to wealthy Chinese buyers, who account for more than a third of the luxury goods sector's worldwide revenues, as online sales slow at home.
Online retail sales in China grew 17.8% in the first half of 2019, versus 32.4% a year earlier, government data shows.
The acquisition will also help the tech giant face rising competition from rivals such as Pinduoduo.
In response to competition from Pinduoduo, that offers group-buying deals on household goods, Alibaba has already revamped Juhuasuan, its group-buying service.
It also launched Taobao Xinxuan, a line of private-label, house-brand goods.
"Pinduoduo has a will to move towards international brands or cross-border e-commerce, so in the future they would definitely want Kaola. For Alibaba, they'd want to prevent this," said Liu Yiming, who tracks China's e-commerce sector at the research division of 36kr.
The investment in NetEase Cloud Music, along with private-equity firm Yunfeng - which is backed by the tech giant's founder Jack Ma, is also a way for Alibaba and NetEase to ally against a common rival - Tencent Holdings.
Tencent Music dominates the Chinese music streaming market with an 83.8% share through three streaming services, according to Quest Mobile and Macquarie Research, but it recently reported the slowest increase in a key growth metric.
It is under investigation by China's antitrust authority in a review that could end exclusive licensing deals it forged with the world's biggest record labels, Bloomberg has reported.
NetEase Music and Alibaba's Xiami have 10.3% and 2.1% market share, respectively. (Reporting by Ismail Shakil in Bengaluru and Josh Horwitz in Shanghai; Editing by Sayantani Ghosh and Himani Sarkar)