- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
China’s largest e-commerce company, Alibaba, has bought a controlling stake in ChinaVision Media Group for $804 million, the latest salvo in a battle with rival Internet giant Tencent.
Alibaba has been valued at as much as $200 billion — considerably higher than Facebook’s market capitalization of $178 billion as of Wednesday — and is widely expected to go for an initial public offering soon.
PHOTOS: China Box Office 2013: The Top 10 Movies
Alibaba’s purchase of a ChinaVision stake will give it TV and movie content, as well as access to games and even English Premier League soccer.
ChinaVision Media produces and distributes movies and TV dramas. The company was entitled to 30 percent of investment return in last year’s top box-office title, Stephen Chow’s Journey to the West: Conquering the Demons.
ChinaVision and Alibaba have said they will set up a strategic committee to explore future opportunities in online entertainment and media-related areas. Alibaba launched a TV operating system, Ali TV, last year.
STORY: Chinese Online Giant Alibaba Eyes New York Stock Exchange for IPO
Alibaba, which operates e-commerce businesses including Tmall.com and Taobao, is competing with Tencent, China’s largest Internet group, and the country’s top search engine, Baidu, for dominance in the online marketplace, with each group looking to grow in each other’s markets.
Tencent currently owns about 8 percent of ChinaVision, but its stake in ChinaVision has been reduced to around 3 percent after a surge in the stock price following the Alibaba move.
Earlier this week, Tencent took a 15 percent stake in China’s second biggest online retailer, JD.com, which is Alibaba’s archrival, and is generally seen as a stronger player in the booming mobile market.
Sign up for THR news straight to your inbox every day
More from The Hollywood Reporter
Mindy Kaling, Bruce Springsteen, Julia Louis-Dreyfus Among Honorees of White House’s National Medals of Arts
Ed Sheeran Goes on Intimate Journey in New Disney+ Docuseries ‘Ed Sheeran: The Sum of It All’
Mark Twain Prize
Adam Sandler’s Starry Friends Toast His Comic Legacy as He Receives Mark Twain Humor Prize
Jason Ritter Jokes His First Hollywood Job Was a “Full-on Nepotism Hire” Thanks to His Dad John Ritter