Alibaba Group Holding on Monday announced plans to raise 10 billion yuan ($1.5 billion) for a new investment fund targeting the cultural and entertainment sectors in China and to establish a separate cultural and entertainment group.
The announcement came as the Chinese e-commerce giant aims to capture a larger share of the growing market for cultural and entertainment products in the country, which is getting crowded with more and more major players trying to tap into the industry.
"This is a firm step Alibaba Group took in its strategy in the cultural and entertainment sectors. It also means that a brand new ecosystem, a cultural and entertainment ecosystem, has been formed during the evolution of Alibaba's ecosystem," Alibaba Group CEO Zhang Yong said in a statement the company sent to the Global Times on Monday.
He added the cultural and entertainment ecosystem will enrich Alibaba's ecosystem and provide consumers and users with more experiences and services.
Alibaba has been moving swiftly toward the cultural, media and entertainment sectors in recent years, acquiring and establishing new businesses, including Youku Tudou, mobile software service provider UC, Alibaba Pictures, Alibaba Music, Alibaba Sports, Alibaba Games, Alibaba Literature and Alibaba Digital Entertainment.
All these businesses will be consolidated into the new cultural and entertainment group, which will be headed by UC CEO Yu Yongfu, according to the statement. Youku Tudou CEO Gu Yongqiang will head the investment fund, the statement said.
The investment fund will move forward in parallel with the new group to expand the cultural and entertainment ecosystem on multiple screens and connect more ecosystem partners, Gu said in an open letter Alibaba sent to the Global Times Monday.
However, Alibaba will not be the sole player in the cultural and entertainment industry, which has also attracted many other Chinese conglomerates, such as Internet giant Tencent Holdings and real estate developer Dalian Wanda Group, both of which have been making large investments in these sectors.
