Alibaba Pictures, the film unit of Jack Ma’s online commerce empire Alibaba Group is set to raise up to US$1.6 billion (£1 billion) in a share sale on the Hong Kong Stock Exchange. Parent company Alibaba Group which gained prominence after its groundbreaking Initial Public Offering (IPO) which raised US$25 billion (£16.2 billion) have been expanding its digital holdings over the years beyond its expertise in e-commerce. It bought over ChinaVision Media Group Ltd in June last year for US$800 million (£520 million) before renaming it Alibaba Pictures.
Despite not having produced a single movie, Alibaba Pictures’ shares have arisen 145 per cent on expectation that its parent group with inject cash into the company some point in time. The company may be new but it is aiming big in the Chinese film industry which has been growing over the years and is set to overtake the United States to become the world’s largest movie inudstry by 2020. While the company has not specificied any firm acquisiton plans the share sale this time is definitely aimed at funding any ‘potential acquisitions arising out of media-related investment opportunities that may arise in the future.’