Rumor: Netease to List Portal Business
Sohu IT, 4/14/09
An industry source has revealed that Internet portal and online game developer and operator Netease (Nasdaq: NTES) is currently working to separate and independently develop its portal business (including advertising and wireless) and its online gaming business, with plans to independently list its portal business on the stock exchange.
According to the source, management at Netease has been bothered by the low stock price forecasts caused by the company's online gaming business. The company's portal and online gaming services are also competing for the same resources, leading to an inability to effectively allocate resources and negatively affecting competitiveness of the portal service. A specific date for an independent listing has not been announced.
William Ding, CEO of Netease, stated that the company plans to expand its portal business, with the company news center of over 100 employees to be relocated to Beijing. During the relocation, the Netease website business division will also undergo restructuring, with a goal of integrating operations in Beijing, thereby achieving independent development of the portal business.
Keywords: WVAS corporate restructuring strategy game developer Internet Netease NTES online gaming portal William Ding IPO
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