Alibaba Group Holding Ltd takes direct control over Alibaba Pictures

The $159 million deal sees the Alibaba Group Holding Ltd upping its 49% stake to 51 and thus gaining direct control over its board.

On Monday, Alibaba Group Holding Ltd stated, it will be increasing its stake in Hong Kong-listed Alibaba Pictures to 51%, up from its current 49%, and thus essentially take control of the company’s board.

As per its statement, Alibaba Pictures will be issuing 1 billion new shares to Alibaba at HK$1.25, thus valuing the deal at around $159.9 million (HK$1.25 billion).

“The proposed share purchase is a vote of confidence in Alibaba Pictures, and we will continue to invest resources,” said Daniel Zhang’s CEO in a statement.

Alibaba Pictures, which came out with its IPO in 2016, operates under Alibaba’s Digital Media and Entertainment business.

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