Alibaba has acquired a stake of film and movie business Wanda Film Holdings, following shortly after rival Tencent announced it would be taking a stake in Wanda Commercial Properties, the property side of the business.
Bolstering its existing portfolio of entertainment investments, including its own Hong Kong-listed Alibaba Pictures, as well as its Digital Media and Entertainment Group.
According to Forbes, a statement from Wanda films revealed Alibaba Group, and government-backed Cultural Investment Holdings would take a 12.8% stake for $1.2 billion. It added that Alibaba will hold 7.7% and Cultural Investment 5.1%.
Alibaba will work with Wanda Films on online cooperation and marketing.
The move comes as the link between Hollywood and China had been strengthened by deals among studios and Chinese business. However, Alibaba Pictures has had a tougher time than expected.
This week also saw the dismantling of DreamWorks animation’s major Chinese partnership, according to Caixin. The Hollywood animation studio is leaving a joint venture, Oriental DreamWorks, selling off its stake to CMC Capital Partners.
Oriental DreamWorks will rebrand as Pearl Studios, while DreamWorks Animation’s own film, television, consumer products and digital gaming businesses will become part of NBCUniversal in China.