According to media reports, NetEase's music app NetEase Cloud Music has passed the hearing of the Hong Kong Stock Exchange and will soon launch an IPO to raise about $1 billion. In response, NetEase Cloud Music said, "no comment."
On May 26, NetEase announced the proposed spin-off of NetEase Cloud Music for an independent listing on the main board of the Hong Kong Stock Exchange.
According to NetEase Cloud Music's prospectus, NetEase Cloud Music's operating revenues for 2018-2020 are 1.148 billion, 2.318 billion, and 4.896 billion yuan, respectively, with net losses attributable to the company's shareholders of 2.006 billion, 2.016 billion, and 2.951 billion yuan, respectively.
From 2018 to 2020, the number of monthly active users of NetEase Cloud Music was 105.1 million, 147.2 million, and 180.5 million, respectively. The number of monthly paying users was 4.2 million, 8.6 million, and 16 million, respectively, with monthly revenue of 8.9 yuan, 9.3 yuan, and 8.4 yuan for an individual paying user.
NetEase holds 62.46% of its shares, Taobao China Holdings Limited has 10.81%, and Baidu (Hong Kong) Limited holds 4.26%.
In terms of funds, NetEase Cloud Music said the fundraising would be mainly used to strengthen the music community further, enrich diversified music content, continue to innovate, and improve technical capabilities. It will continue to deepen cooperation with various partners and further expand the platform's diversified business model.
On July 24, the General Administration of Market Supervision issued an order to Tencent Holdings Ltd. to release exclusive online music copyrights and other penalties.
Subsequently, rumors spread that NetEase Cloud Music was negotiating with many record companies for non-exclusive copyright cooperation, including well-known copyright holders such as JVR Music, involving the works of many famous artists such as Jay Chou and Mayday.
In response, NetEase Cloud Music said that it is pushing forward the cooperation negotiations with many copyright parties and welcomes more partners to establish cooperation and resume cooperation with NetEase Cloud Music. NetEase Cloud Music is willing to cooperate with copyright acquisition with the greatest sincerity to provide users with a complete music experience. At the same time, NetEase Cloud Music will also actively fulfill its platform responsibility to help promote the wide dissemination of excellent music works and promote the sustainable and healthy development of the industry.
