Wanda Film sells 12.77% stake to 2 strategic investors for US$1.2b
Alibaba Group said today it has joined Shanghai-listed TV and film production firm Cultural Investment Holdings Co to acquire a 12.77 percent stake in Wanda Film Holding for 7.8 billion yuan (US$1.2 billion).
Alibaba will pay 4.68 billion yuan for 7.6 percent of Wanda Film at 51.96 yuan per share, becoming Wanda Film’s second largest shareholder.
Cultural Investment Holdings is slated to take a 5.1 percent stake in Wanda Film.
Wanda Group will remain the film unit’s biggest shareholder with 48 percent after the stake acquisition by the two companies.
Wanda Group said in an official posting today that the stake acquisition helped introduce valuable strategic investors.
“We believe the introduction of two strategic investors would complement Wanda Film’s current operation and benefit its long-term development,” it said.
Wanda Film said in a stock exchange filing that it would collaborate with Alibaba Group in film distribution, production, and online ticketing.
Alibaba Group has been driving its digital media and entertainment business since it set up its cultural and entertainment business unit in 2016. In the fourth quarter last year, revenue from its digital media and entertainment business surged 33 percent from a year ago to 5.4 billion yuan.