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.