- Alibaba to shut on-line streaming platform Xiami Music on February fifth.
- Xiami Music solely gained a 2% share in China’s music streaming market.
- SAMR alleged Alibaba Group of monopolistic practices in December.
Alibaba Group Holding Restricted (HKG: 9988) stated on Tuesday that it plans on closing Xiami Music in February. The Chinese language tech large had acquired the music streaming platform in 2013 in a bid to develop its footprint within the leisure business.
Alibaba’s on-line music arm made the announcement through its Weibo account on Tuesday and stated:
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“As a consequence of operational changes, we’ll cease the service of Xiami Music on February 5th. It’s exhausting to say goodbye after being with you for 12 years.”
Alibaba shares had been reported about 3.5% down in premarket buying and selling on Tuesday and didn’t recuperate considerably later within the day. Together with the value motion, the inventory now has a per-share worth of £21.11 after recovering from a low of £16.10 in March 2020, when the worldwide affect of the COVID-19 disaster was at its peak.
Xiami Music has a 2% share in China’s music streaming market
Over time, Alibaba invested tens of millions within the music streaming platform in a bid to win a broader share in China’s on-line music market that Tencent Holdings at the moment dominates. In separate information, the New York Stock Exchange reversed its decision to delist the highest three Chinese language telecom firms on Tuesday.
As per TalkingData (Beijing-based knowledge intelligence firm), Alibaba’s investments in Xiami Music have gone to waste because it solely managed to safe a 2% share within the nation’s music streaming market previously eight years. The web music app remains to be behind a variety of distinguished names, together with NetEase Cloud Music, KuWo, QQ Music, and KuGou Music.
However an finish to Xiami Music won’t be the tip of Alibaba’s participation in China’s music streaming market. The Hangzhou-based multinational firm invested £513.61 million in NetEase Cloud Music final yr. Following Xiami’s closure, Alibaba would possibly concentrate on increasing its market share through NetEase Cloud Music.
SAMR alleges the e-commerce agency of monopolistic practices
Alibaba raised its share repurchase program to £7.41 billion in December. However the State Administration for Market Regulation (SAMR) launched investigation into the e-commerce firm’s over alleged monopolistic practices have fuelled unease amongst traders and have on the corporate’s inventory in latest weeks.
Alibaba carried out barely upbeat within the inventory market final yr with an annual acquire of a little bit beneath 10%. On the time of writing, the Chinese language multinational expertise firm has a market cap of £460 billion and has a worth to earnings ratio of 28.88.