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Alibaba May inject entertainment assets into pictures unit

8 April 2015 09:55 (UTC+04:00)
Alibaba May inject entertainment assets into pictures unit

By Bloomberg

Alibaba Group Holding Ltd. may inject some of its entertainment assets into its listed movies unit to integrate the businesses. The film company’s shares surged by the most in more than two months.

The assets include an online movie ticketing business and a financing platform used to help produce content, Alibaba Pictures Group Ltd. said in a filing Wednesday. There is no certainty a deal will go ahead, it said.

Alibaba Group is considering bringing the assets together after buying an $800 million stake in the Chinese film company last year. Chairman Jack Ma visited Hollywood in October and said at the time he was seeking partners to acquire more content because China’s film industry needs great cultural products.

“Integrating these two businesses complements Alibaba Pictures’ existing lines of business,” Alibaba Group said in an e-mailed statement Wednesday.

Alibaba Pictures rose as much as 19 percent, the most intraday since Jan. 22 in Hong Kong trading. The company had suspended trading in the shares on March 24 pending Wednesday’s announcement, when trading was re-started. The stock traded at HK$3.20, up 12 percent on the day, as of 10:04 a.m. local time.

Alibaba Pictures said in August that management uncovered possible accounting flaws and delayed the release of earnings for the period ended in June. The company has blamed misstated tax payments and other accounting on lax internal controls by the previous management team.

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