INTERNATIONAL – Alibaba Group said on Monday it will increase its stake in Hong Kong-listed Alibaba Pictures to 51 percent, taking control of the film unit’s board.
Alibaba Pictures will issue one billion new shares to Alibaba at HK$1.25, valuing the exchange at roughly HK$1.25 billion ($159.9 million), the e-commerce firm said.
Currently, Alibaba owns a 49 percent stake in the firm.
“The proposed share purchase is a vote of confidence in Alibaba Pictures, and we will continue to invest resources,” Alibaba chief Daniel Zhang said.
Alibaba Pictures, which listed in 2016, operates under Alibaba’s Digital Media and Entertainment business.
In other Alibaba news, The president of Alibaba’s video streaming service, Youku, has stepped down and is believed to be talking to Chinese authorities as part of a potential corruption case, the company said on Tuesday.
The abrupt departure comes amid a wider reshuffle of Alibaba executives as the company shores up its leadership following the announcement by chairman Jack Ma that he will retire next year.Reuters