Alibaba Pictures, the motion picture subsidiary of e-commerce and internet group Alibaba, has launched a RMB2bn ($300m) entertainment investment fund with Wuhu Gopher Asset Management, Hollywood Reporter reported yesterday.
Hainan Alibaba Pictures Entertainment Industry Investment Fund will make “investments in companies along the value chain of the movie and television entertainment industry, creating synergies with Alibaba Pictures’ own capital,” according to a joint statement.
Alibaba is providing up to $75m of the capital for the fund while asset manager Gopher Asset is supplying $225m. It will target companies involved in film production and development, celebrity resources, marketing and distribution, and advanced technology.
Zhang Qiang, chief executive of Alibaba Pictures, said: “In recent years, the Chinese entertainment industry, which has mainly been driven by movies, has undergone rapid development.
“Bountiful investment opportunities and immense room for integration have emerged both upstream and downstream of the industry value chain.”
Alibaba Pictures emerged from ChinaVision Media, in which Alibaba bought a 60% stake in March 2014 for $805m, rebranding it three months later.
The company, listed in Singapore and Hong Kong, acts as a distributor for Chinese-made films but has also invested in Hollywood franchise blockbusters such as Mission: Impossible – Rogue Nation and Star Trek Beyond, and plans to move into international co-productions soon.