Alibaba Invests $383 Million In Chinese Entertainment Company Enlight Media
China’s e-commerce giant Alibaba is continuing the expansion of its business sphere which already encompasses online shopping sites, search engine, taxi services, smartphone making, entertainment business and many more. The company’s most recent venture is again in the entertainment business as it has invested 2.4 billion yuan ($382.7 million) in Beijing Enlight Media.
An Enlight Media Filing has revealed that the deal took place in a private placement where, Hangzhou Ali Venture Capital, the venture capital unit of Alibaba, paid 24.22 yuan per share to buy the majority stake.
Alibaba has certainly decided to go all in the blooming online video sector of China as it realizes the potential growth for investing. The group is multiplying its investments in the entertainment sector with every passing year. Its investment, according to consultancy iResearch’s predictions, will reach 90 billion yuan in 2018, up from 24 billion yuan in 2014.
One of the heavy investments Alibaba made last year was in a film studio ChinaVision Media Group. It spent $800 million for a majority stake in ChinaVision before renaming it as Alibaba Pictures Group.
Moreover, the company has purchased a 16.5% stake in online video from Youku Tudou. Also, it has invested in one of the serious competitors of the Enlight, Huayi Brothers, for an 8% stake.
“We are not commenting on this deal at the moment. Please refer to the Shenzhen Exchange announcement,” Variety quotes Alibaba who reportedly declined to comment. By the same token, Enlight didn’t comment, the source says. However, Enlight founder Wang Changtian was quoted by a Chinese source as: “no reason other than Alibaba had been the highest bidder” in the budding process. Which makes it a bit logical to conclude that the China’s major TV production group will have sold the stake to the “highest bidder” Alibaba.
Enlight is a renowned name in Chinese entertainment industry where it has always been launching the eminent projects. Now when it has teamed up with enormously powerful and adventurous Alibaba, the Chinese studio is likely to see another phase of rapid advancement in the means of entertainment.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.