Published By : 06 Feb 2018 | Published By : QYRESEARCH
Alibaba, the most prominent ecommerce company from China, has agreed to take up 7.66 percent shares in Dalian Wanda Group Co.’s Wanda Film Holding Co. Alibaba will be paying 4.68 billion yuan for the deal, which translates into US$743.6 million. This deal will make Alibaba the second biggest stakeholder in the company that provides film production and distribution, film screening, television production, and other services.
Real estate to entertainment mogul, billionaire Wang Jianlin, will remain the leading stockholder while government controlled Beijing Cultural Investment Holdings will become the third largest shareholder by buying 5.11 percent stake in the advertising, construction, and production Company for 3.12 billion yuan.
These two deals will mark the first major sale of shares by the company to outside investors since it was listed on the Shenzen Bourse back in 2015. It must be noted that Billionaire founder Wang Jianlin has been selling his real estate assets too, including hotels, to pay off debt. This fundraiser will also help the company in reconstructing its assets, as their shares have been stopped form trading since July last year.
Alibaba’s interest in Wanda Film is in sync with a larger role that Jack Ma has been aspiring in the Chinese film industry. It must be noted that Alibaba Pictures Group Ltd. has also taken up a stake in Amblin Partners back in 2016, which is a production house managed by renounced Hollywood director Steven Spielberg. The two companies have collaborated to compete against Tencent Holdings Ltd., whose Pony Ma Huateng has been investing both in TV production and movies.