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

NetEase Inc's 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 BABA, Baidu Inc 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 TME, rival Cloud Village Inc, operates a music-streaming platform like Spotify Technology SA 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.