Alibaba Group stock is witnessing a pre-market decline, mirroring the broader trends in indices like IShares China Large-Cap ETF (FXI) and KraneShares Trust KraneShares CSI China Internet ETF (KWEB).
Alibaba Pictures Group recently announced its intent to acquire a majority stake in Pony Media Holdings, the parent company of Damai. The target company is a significant producer of live performances in China, including concerts, festivals, plays, and sporting events.
This acquisition, valued at $167 million, aims to bolster Damai’s footprint in the live entertainment industry, covering event production, promotion, venue operation, and artist management, as reported by SCMP.
Alibaba Pictures views this acquisition as a strategic move to bolster its offline entertainment portfolio and fortify brand recognition.
Alibaba Pictures will issue around 2.5 million shares to Alibaba Investment Limited to finance this transaction. This move will increase Alibaba Group Holding’s stake in Alibaba Pictures to approximately 54.26%.
This development comes shortly after the Chinese e-commerce giant Alibaba Group Holding Limited (NYSE: BABA) disclosed its plan to invest $2 billion in Turkey. Michael Evans, President of Alibaba, made the revelation during a meeting with Turkish President Tayyip Erdogan. The specific timeline for this substantial investment remains undisclosed.
Evans noted that Alibaba has already injected $1.4 billion into the Turkish economy through its subsidiary, Trendyol, a leading e-commerce platform in Turkey.
Erdogan is currently in the United States to attend the 78th session of the U.N. General Assembly. He also met with Trendyol’s President, Caglayan Cetin, who shared additional details of upcoming investments, including a data center, a logistics center in Ankara, and an export operation center at Istanbul Airport.
As of the latest update, Alibaba Group stock is trading at $84.07, down 1.95% compared to the previous trading session.