Alibaba acquires company to expand into digital
An investment firm controlled by the founders of e- commerce conglomerate Alibaba Group Holding Ltd agreed to buy a 20-percent stake in a Chinese Internet-television company for about $6.54 billion yuan ($1.06 billion).
Under terms of the partnership with Wasu Media Holding Co, the two companies will work together on digital content that can be presented on TV platforms.
The acquisition is the latest in a buying spree by Alibaba as it heads to an initial public offering in the United States later this year.
The investment in Wasu is not Alibaba’s first foray into the media sector. In mid-March, Alibaba agreed to pay $804 million for a 60-percent stake in ChinaVision Media Group Ltd, which has a rich business portfolio ranging from print media to television and films to mobile games.