Beijing, 10th December: China’s leading e-commerce company, Alibaba Group, announced the company will increase its stake in Alibaba Pictures from 49% to 50.92%, for HK$1.25 billion (US$160 million) giving the Group a controlling stake.
Under the terms of the agreement, Alibaba Pictures will issue one billion new shares to Alibaba Group at HK$1.25 per share. After the transaction, Alibaba Group will have majority control over Alibaba Pictures. The transaction is subject to customary closing conditions, including, among others requirements, approval of the transaction by the independent shareholders of Alibaba Pictures as well as the Hong Kong Stock Exchange.
According to the company, Alibaba Pictures is “an Internet-driven integrated platform that covers content production, promotion and distribution, IP licensing, cinema ticketing management and data services for the entertainment industry.” The company generated revenues of RMB 1.5 billion (US$223 million) for the six months ended 30th September 2018, up 29% year-on-year. Its net loss in the same period narrowed by 64%, down to RMB 154 million (US$22 million).
Alibaba Group’s CEO Daniel Zhang, said, “The Alibaba Digital Media and Entertainment business group has made great strides in implementing the ‘happiness’ aspect of our ‘Double H’ strategy. We look forward to greater integration and synergies between Alibaba Pictures and related business in Alibaba Group on both content production and distribution to deliver high-quality experiences for consumers in China. The proposed share purchases is a vote of confidence in Alibaba Pictures, and we will continue to invest resources and take full advantage of our ecosystem to help Alibaba Pictures tap into the promising growth prospects of China’s film industry.”
Source: Alibaba Group press release