You will be redirected back to your article in seconds

Alibaba Pictures Invests $150 Million in Dadi Cinema Chain

Alibaba Pictures Group, the movies division of Chinese e-commerce giant Alibaba, has agreed to invest $154 million (RMB1 billion) in convertible bonds issued by Dadi Cinema Construction. The move is the first by APG into theater circuits.

The two companies also struck side deals covering movie promotion, e-commerce and other film-related businesses.

The financial terms of the deal and details of the convertibility of the bonds were not disclosed.
Dadi is China’s second largest cinema investment and management company. It had attendance over 71.6 million, and box office which grew in line with national trends, at 47%, to reach $339 million (RMB2.2 billion) in 2015. At the end of April 2016, Dadi Cinema owned 313 cinemas with a total of 1,662 screens, covering 28 provinces and 150 cities nationwide. It also has more than 310 contracted cinemas set to open.

“Through collaborating with Dadi Cinema, Alibaba Pictures will extend its internet capabilities and basic
industry services to cinemas, giving them direct access to millions of e-commerce users in Alibaba’s e-commerce ecosystem, and bringing new revenue streams and a new business model to cinemas,” APG said in a statement.

“Cinemas will play an integral part in Alibaba Pictures’ operations, as the company aims to build an integrated entertainment platform for the film industry. It will not only serve as an important consumption context within the entertainment industry, but also become a core application of internet in the film industry,” said Zhang Qiang, CEO of Alibaba Pictures.

In 2015, APG focused its expansion on building an integrated entertainment platform for the film industry. It made acquisitions including Yueke Software Engineering, Taobao Movie and Yulebao, and participated in the buyout of Bona Film Group from its public trading on NASDAQ. APG now incorporates film financing and investment, content sourcing and production, intellectual property nurturing, Internet-based promotion and distribution, and cinema services.

“As the Chinese film industry is constantly innovating and achieving breakthroughs, such collaboration on a capital level will enhance the synergies of both parties in aspects such as film distribution, movie marketing, joint membership management and the establishment of big data,” said Yu Xin, GM of Dadi Cinema.

APG now has a production investment slate that includes “Ferry Man,” “Three Lives Three Worlds Ten Miles of Peach Blossom” and “Ao Jiao Yu Pian Jian.”  In 2015, APG also invested in Mission: Impossible – Rogue Nation; and in REAL, a Korean production starring popular Korean actor Kim Soo Hyun which is expected to release in 2017.

More Biz

  • Kevin Mayer Disney chief strategy officer

    Disney to Put Emphasis on Asia Growth, Direct to Consumer

    The newly expanded Walt Disney is to place particular emphasis on Asia as it rationalizes its recent acquisition of 21st Century Fox and as it prepares to expand its direct-to-consumer (D2C) businesses. “Asia Pacific is one of the growth drivers [of the new Disney]. Asia is super important to us,” said Kevin Mayer, chairman of [...]

  • Woodstock 50 Promoters Issue Statement on

    Woodstock 50 Promoters Issue Statement on Ticket On-Sale Delay

    The organizers of the Woodstock 50 anniversary festival — scheduled for Aug. 16-18 in Upstate New York and headlined by Jay-Z, Dead & Company, Miley Cyrus and others — have issued a statement on the delay in the event’s ticket on-sale date, which was originally scheduled for Monday but was abruptly postponed over the weekend. [...]

  • In this image released, general views

    Comcast Considers NBC Sky News Channel as NBCUniversal Revs Streaming Strategy

    Comcast is considering the launch of a news channel that would draw from the resources of NBC News and Sky News. Comcast chairman-CEO Brian Roberts dropped that tidbit during his remarks Thursday morning on the cable giant’s first quarter earnings call with Wall Street analysts. NBCUniversal CEO Steve Burke also spoke enthusiastically about NBCU’s progress [...]

  • Brian Roberts Olympics NBC Comcast

    Comcast Q1 Profit Rises On High-Speed Internet, Sky Results

    Comcast Corp. said profit for the first quarter of 2019 rose 14% thanks to new subscribers coming to its cable unit for high-speed online service and the addition of its recently acquired Sky PLC European-satellite business. The owner of NBCUniversal and the Comcast cable business said profit came to $3.55 billion, or 77 cents a [...]

  • Netflix-logo-N-icon

    Netflix Raises $2.2 Billion Through Junk-Bond Offering

    Netflix just went deeper into hock: The company announced the pricing of unsecured bonds in a transaction raising around $2.2 billion, giving it more cash to invest in content, real estate and infrastructure. The streamer had said Tuesday that it planned to raise $2 billion through a new debt offering, bringing its long-term debt to [...]

  • Ridiculous Six

    Netflix Benefits From Changes in New Mexico's Production Incentives

    When New Mexico’s new governor, Democrat Michelle Lujan Grisham, signed SB2 in late March, the headline was that it more than doubled the annual cap on the state’s 25%- to 30%-per-project refundable film and TV tax credit, from $50 million to $110 million.  Arguably more noteworthy, however, was the new law’s provision that the cap [...]

  • Gabrielle Union Marketing Summit

    Listen: How Gabrielle Union Bet on Herself and Changed Her Brand

    Actress Gabrielle Union said she was nearly 17 years past the expiration date of her mass appeal when she got the brand partnership of her dreams. “They tell you that after 26, ‘Honey, hang it up,'” Union said on the latest episode of the Variety podcast “Strictly Business.” The episode was recorded during a keynote [...]

More From Our Brands

Access exclusive content