Alibaba Pictures, the movie subsidiary of e-commerce giant Alibaba, has acquired a 30% in China-based film investment firm Hehe Pictures, China Money Network reported yesterday.
Financial details of the transaction have not been disclosed. Alibaba Pictures will become the second largest shareholder in Hehe following the closure of the deal.
Incorporated in 2013, Hehe Pictures has invested in a range of commercially successful movies that have grossed a combined RMB4.8bn ($700m) at the box office. The company is planning to produce another 20 films in the near future.
Hehe Pictures’ owners include actor Chen Kun, musician Yand Kun and director Cao Baoping.
The news follows an earlier announcement by Alibaba Pictures that it was setting up a $300m fund to back ventures in the movie and TV sector.
Hehe Pictures previously participated in a $260m series A round for Alibaba Pictures’ online ticket booking platform Taobao in May 2016.
Zhang Qiang, chief executive of Alibaba Pictures, said: “Hehe Picture has made innovative progress in movie investment and distribution. We hope to explore partnerships in movie production and distribution to help form a healthy film financial ecosystem in China.”