Chinese e-commerce giant Alibaba has moved to reorganise its entertainment assets by forming a new digital media group, along with unveiling plans for a 10 billion yuan (€1.35bn/$1.48bn) fund for new projects.
The Reuters news agency said the move marks a total consolidation of Alibaba’s media businesses, including video-sharing platform Youku Tudou, mobile internet company UCWeb and film company Alibaba Pictures Group, as well as the firm’s sports, games, literature, music and digital entertainment divisions.
Yu Yongfu, former chief executive of UCWeb, will become the chairman and chief executive of the newly formed Alibaba Digital Media and Entertainment Group, reporting directly to Alibaba chief executive Daniel Zhang.
Youku Tudou chairman and chief executive Victor Koo will chair the Alibaba Digital Media and Entertainment Strategy and Investment Committee, which will manage the planned fund for the new digital media group, which an Alibaba spokeswoman confirmed will be over 10 billion yuan without specifying its investment targets.
Alibaba has continued a concerted drive into the sports market and has struck a number of deals in recent weeks. World Rugby last week revealed details of a major 10-year investment programme worth $100m (€90.9m) with the Alisports division of Alibaba which aims to propel China into a significant player in the global rugby union market.
First revealed in April, the ‘Team China’ strategic partnership will see Alibaba and Alisports make a record rugby investment to support targeted projects over the next 10 years to drive national team performance and grow the participation base in the world’s most populous nation.
A major rugby marketing and promotion initiative will also result in Alisports investing in nationwide marketing and promotional programmes while carrying rugby content on its television and digital platforms.
Alisports last week also agreed a rights partnership with the Chinese Basketball Association. The Yutang Sports website reported that Alisports has been named as the official video broadcast agency of the league. Alisports is set to broadcast the 2016-17 season via Youku. The deal is said to include regular-season encounters, as well as the end-of-season playoffs and finals.
Earlier in October, Alisports struck a deal to become the exclusive global internet business development partner of the China Table Tennis Super League.