China's e-commerce giant Alibaba Group announced Monday that it will take majority control of Alibaba Pictures by increasing its stake in the entertainment company from 49 percent to about 50.92 percent.
Alibaba Pictures, listed on the Hong Kong Stock Exchange, will issue 1 billion new shares, worth 1.25 billion Hong Kong dollars (about 160 million U.S. dollars) in total, to Alibaba Group, according to a joint announcement by the two companies.
Alibaba Group will obtain majority board representation in Alibaba Pictures after the transaction is completed.
"We look forward to greater cooperation between Alibaba Pictures and Alibaba Group to deliver high-quality products for Chinese consumers," said Daniel Zhang, CEO of Alibaba Group. "We will continue to help Alibaba Pictures further tap into China's film industry."
Fan Luyuan, chairman and CEO of Alibaba Pictures, said the company would take advantage of Alibaba Group's big data and e-commerce resources.
The transaction is subject to approval by Alibaba Pictures independent shareholders and the Hong Kong Stock Exchange alongside other customary closing conditions.
Alibaba Pictures posted revenue of around 1.53 billion yuan (about 222 million dollars) from April to September this year, a year-on-year increase of 29.4 percent.
Alibaba Pictures has invested in a number of Hollywood blockbusters, including "Mission: Impossible - Fallout" and "Star Trek Beyond."
