UPDATED: Chinese e-commerce giant Alibaba is to reorganize it digital and entertainment businesses and launch a $1.54 billion (RMB10 billion) entertainment fund.
According to news initially reported by Reuters, Yu Yongfu, who currently heads the group’s mobile business, will now head the combined mobile and entertainment businesses, Alibaba Digital Media and Entertainment.
The move involves the consolidation of: Youku Tudou, the video streaming firm it acquired full control of last year; UCWeb, its mobile browser business acquired in 2014; Alibaba Pictures Group, Alibaba Music, Alibaba Gaming and Alibaba Literature.
Victor Koo, who co-founded Youku, step down from Youku Tudou and will instead head the strategy committee for ADMEG and will oversee the new entertainment fund.
Alibaba Pictures, which has share listings in Hong Kong and Singapore, has been the vehicle for ramping up Alibaba’s interests in Hollywood, as well as the corporate home for cinema marketing, distribution and online ticketing activities.
Alibaba Pictures confirmed the information by email to Variety and said that the shakeup was “a significant milestone in (Alibaba’s) advancement of happiness in its double-H program.” There is no filing to the Hong Kong Stock Exchange. According to China Money Network the news first emerged in an internal letter from Alibaba Group CEO Daniel Zhang.
The moves come only days ahead of a week-long round of China-related conventions, seminars and screenings in Los Angeles, overlapping with the American Film Market in Santa Monica.