NetEase

NetEase, Inc. is a Chinese internet technology company founded by Ding Lei in June 1997. The business began with internet infrastructure and communications services, including email servers sold to internet-access providers, and then developed consumer websites built around email, chat, news, search, and online communities. Its 163.com identity reflects the 163 telephone number historically used by Chinese internet users to access the web. NetEase became one of the early Chinese internet companies to reach the public markets, completing an initial public offering on Nasdaq in July 2000. Online games became the company’s defining business after it established NetEase Games in 2001. Its internally developed portfolio has included the Westward Journey series, Fantasy Westward Journey, Tianxia III, Heroes of Tang Dynasty Zero, Ghost II, Onmyoji, Marvel Rivals, and other mobile and PC titles. NetEase has also acted as a Chinese publishing and operating partner for overseas developers. Its long partnership with Blizzard Entertainment brought games including World of Warcraft, StarCraft II, Overwatch, Hearthstone, Diablo III, and Heroes of the Storm to China, although the original agreement ended in 2023 before a new arrangement was announced in 2024. The gaming division has expanded internationally through acquisitions, minority investments, publishing agreements, and the creation of overseas studios. The company’s other major consumer platform is NetEase Cloud Music, launched in 2013. The service developed a strong identity around social music discovery, playlists, user communities, and independent artists. NetEase subsequently added licensing relationships with international music companies and spun the music business into a separately listed Hong Kong company in 2021. Other businesses have included the Youdao education and language-services brand, news aggregation, online literature and fan communities, comics, advertising, email, cross-border e-commerce, private-label retail, and agricultural operations including pig farms. NetEase has repeatedly adjusted its portfolio as market conditions and regulation changed. It closed or sold certain e-commerce and legacy web services, sold Kaola to Alibaba in 2019, and completed a secondary listing in Hong Kong in 2020. In games, the company invested heavily in international studios during the late 2010s and early 2020s, but later reduced funding and consolidated parts of its overseas development network. The company remains best known internationally for games and game publishing, while its domestic brand encompasses a broader collection of content, technology, communications, education, and commerce services.

Ding Lei founded NetEase in China in June 1997 with a small team. The company initially sold email servers to internet-access providers before building consumer internet services. Its early offerings included bilingual email, chat rooms, community features, personalized information, and the 163.com email domain. NetEase also supported an online literature contest in 1999, reflecting the company’s early role in China’s emerging internet culture. By the end of that year, it had raised nearly US$20 million through two funding rounds. NetEase went public on Nasdaq on July 1, 2000. The listing occurred during a difficult period for Chinese internet companies seeking Western capital, and the company experienced management and reporting problems in 2001. Several executives departed after questions about sales data, while acquisition discussions with i-Cable Communications ended. The company subsequently continued expanding its user base and attracted investment from institutions including SoftBank, ING Barings, Goldman Sachs, Techpacific.com, and News Corporation. Gaming became central to the business in 2001, when NetEase formed NetEase Games and released Westward Journey Online. The franchise grew substantially and was followed by a wider portfolio of PC and mobile games. In 2008, NetEase began operating Blizzard games in China. It later published Hearthstone, Overwatch, and other Blizzard properties, while also developing partnerships with Microsoft, Mojang, CCP Games, The Pokémon Company, Mattel, Bungie, and independent studios around the world. NetEase continued to diversify its internet services. It launched Youdao as a search and education brand, Lofter as a community platform, NetEase Cloud Music in 2013, NetEase Comics in 2015, and Yanxuan and Kaola in e-commerce. The company also developed education products, news aggregation, advertising, email, online literature, and digital-content services. Kaola was sold to Alibaba in 2019. NetEase Cloud Music developed into a major music platform and became a separately listed company in Hong Kong in 2021. The company completed a Hong Kong secondary listing in 2020 and continued internationalizing its games operations. It opened overseas offices, acquired or funded studios, and established development teams connected to creators from major companies such as Sega, Capcom, Ubisoft, Bethesda, BioWare, and CD Projekt. From 2024 onward, NetEase began tightening its foreign games portfolio, reducing funding for some studios and closing or pausing selected operations. This represented a shift from rapid international expansion toward more selective investment and concentration on commercially promising franchises. NetEase remains an active, publicly traded technology and entertainment company, with games as its principal international business and a broad ecosystem of Chinese digital services.

1. 2024Marvel Rivals is released

   NetEase launches Marvel Rivals for PC and consoles.

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2. 2021NetEase Cloud Music becomes separately listed

   The music-streaming business is spun off and listed on the Hong Kong Stock Exchange.

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3. 2020Hong Kong secondary listing

   NetEase adds a secondary listing in Hong Kong.

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4. 2015E-commerce expansion

   NetEase launches Yanxuan and Kaola.

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5. 2013NetEase Cloud Music launches

   The company enters on-demand music streaming.

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6. 2008Blizzard publishing partnership begins

   NetEase begins operating Blizzard Entertainment games in China.

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7. 2007Youdao search launches

   NetEase launches its own search service and begins building the Youdao application portfolio.

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8. 2001NetEase Games is established

   The company creates its dedicated games business and launches Westward Journey Online.

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9. 2000Nasdaq listing

   NetEase completes its initial public offering on Nasdaq.

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10. 1997NetEase is founded

    Ding Lei establishes NetEase in China and begins with internet infrastructure and communications services.

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A diversified Chinese internet platform with a gaming-led identity, combining proprietary content, online communities, digital entertainment, and selected technology and commerce services.

• NetEase GamesVideo games and publishing2001

  NetEase’s games division develops, publishes, distributes, and invests in PC, console, and mobile games. Its portfolio includes proprietary franchises, licensed international titles, and games produced by studios in China, North America, Europe, and Japan.

• Fantasy Westward JourneyOnline role-playing game2001

  A major NetEase role-playing franchise based on the Chinese literary tradition surrounding the Journey to the West. It has appeared in online and mobile formats and became one of the company’s most important long-running domestic game properties.

• OnmyojiMobile role-playing game

  A supernatural-themed mobile role-playing franchise drawing on Japanese folklore and illustrated character design. It helped NetEase establish a prominent international mobile-games presence.

• NetEase Cloud MusicMusic streaming2013

  An on-demand music platform built around streaming, playlists, social interaction, recommendation, and user-generated music discovery. It developed a particular connection with independent musicians and later expanded its licensed catalog through agreements with major music companies.

• YoudaoEducation and language technology2007

  NetEase’s education and language-services brand, associated with dictionaries, translation tools, learning hardware, online courses, and other educational technologies.

• 163.comInternet portal and email1997

  NetEase’s principal web identity and a long-running Chinese internet portal associated with email, news, information, community, and other online services.

• Marvel RivalsCompetitive multiplayer game2024

  A team-based player-versus-player shooter developed and published by NetEase Games in collaboration with Marvel Games. It features characters from Marvel Comics and launched for Windows, PlayStation 5, and Xbox Series X and Series S.

• MuMu PlayerAndroid emulator

  An Android emulator for personal computers that allows users to run selected mobile applications and games in a desktop environment.

• 2024Launch of Marvel RivalsProduct launch

  NetEase sought globally recognizable intellectual property for a competitive multiplayer game.

  What changed. NetEase Games and Marvel Games released Marvel Rivals for PC and current-generation consoles.

  Aftermath. The game quickly became one of NetEase’s most visible international releases and expanded the company’s presence in the global live-service market.

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• 2022End of the original Blizzard publishing agreementStrategy

  NetEase and Blizzard had operated a China publishing relationship for approximately 14 years.

  What changed. The companies announced that the existing licensing arrangement would end, leading to the suspension of multiple Blizzard services in China in January 2023.

  Aftermath. A new partnership was announced in 2024, after which the companies planned to restore Blizzard services in China.

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• 2021Spin-off and listing of NetEase Cloud MusicM&A

  The music business had developed into a substantial platform with its own users, licensing relationships, and operating profile.

  What changed. NetEase separated the music-streaming business and listed it in Hong Kong.

  Aftermath. NetEase Cloud Music operated as a separately listed music company while remaining associated with the wider NetEase ecosystem.

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• 2020Hong Kong secondary listingStrategy

  NetEase sought an additional public-market venue and access to investors closer to its principal operating market.

  What changed. The company completed a secondary listing on the Hong Kong Stock Exchange.

  Aftermath. NetEase became accessible through both its Nasdaq listing and Hong Kong listing.

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• 2019Sale of Kaola to AlibabaM&A

  NetEase’s cross-border e-commerce business operated in a highly competitive market dominated by large Chinese platforms.

  What changed. NetEase sold Kaola to Alibaba.

  Aftermath. The transaction reduced NetEase’s direct exposure to cross-border e-commerce and allowed the company to focus more heavily on games, music, education, and content.

  Reported transaction value. Approximately US$2 billion (2019)

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• 2022Valorant-related copyright lawsuitControversy

  Riot Games sued NetEase over alleged copyright infringement concerning similarities between a NetEase game and Valorant.

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• 2001Sales-data reporting controversyControversy

  Questions about whether NetEase sales information had been misreported preceded the departure of several senior executives and the collapse of takeover discussions with i-Cable Communications.

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• 2024NetEase and Blizzard announce a renewed China partnership

  The companies announced a new agreement intended to bring Blizzard titles back to China and to distribute selected NetEase games on Xbox platforms.

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• 2024Marvel Rivals launches

  NetEase Games and Marvel Games released Marvel Rivals, a team-based player-versus-player shooter for PC and current-generation consoles.

  Product launchProduct generation
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• 2023Blizzard games shut down in China

  World of Warcraft, Hearthstone, Overwatch, StarCraft, Diablo III, Heroes of the Storm, and other Blizzard services operated by NetEase were suspended in China.

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• 2022NetEase and Blizzard end their China publishing agreement

  After a 14-year relationship, NetEase and Blizzard announced the end of their licensing arrangement for several Blizzard titles in China.

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• 2020NetEase completes Hong Kong secondary listing

  NetEase carried out a secondary listing on the Hong Kong Stock Exchange.

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• 2019Alibaba acquires Kaola from NetEase

  NetEase sold its cross-border e-commerce platform Kaola to Alibaba in a transaction reported at approximately US$2 billion.

  M&A
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• 2015NetEase launches Yanxuan and Kaola e-commerce services

  NetEase expanded into private-label and cross-border e-commerce through Yanxuan and Kaola.

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• 2013NetEase launches NetEase Cloud Music

  The company introduced its on-demand music-streaming platform, which later emphasized social discovery and independent music.

  Product launch
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• 2000NetEase completes Nasdaq initial public offering

  NetEase issued shares in an initial public offering on Nasdaq, becoming one of the early Chinese internet companies listed in the United States.

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1. NetEase
2. NetEase official website