Alibaba buys 8% stake in entertainment firm

People visit the stand of Alibaba during the 12th China Digital Entertainment Expo, also known as ChinaJoy 2014, in Shanghai,July 31. [Photo/IC]

Alibaba's venture capital arm has reached an agreement to acquire 8 percent stake in Chinese entertainment giant Enlight Media for 2.4 billion yuan ($382.65 million), announced the entertainment company on Wednesday in a filing to Shenzhen bourse.

Enlight Media jumped by the daily limit of 10 percent on Wednesday and closed at 33.11 yuan.

According to the announcement, Hangzhou Alibaba Venture Capital Investment Co will become the company's second-largest shareholder. China Securities Regulatory Commission has approved the placement.

Founded in 1998, Enlight Media is the country's leading multimedia operator and content provider, with businesses ranging from television program and movie production to entertainment event organization.

Alibaba spokeswoman declined to give further details about the acquisition.

Entertainment quest

Alibaba increased its stake in Huayi Brothers, one of China's biggest private entertainment groups, to nearly 8.1 percent in November last year.

Hollywood content may be another item in Alibaba's shopping list, after the company signed an agreement to stream content such as The Hunger Games in July last year, according to Bloomberg.

In April last year, Alibaba and Jack Ma's private equity firm Yunfeng Capital bought $1.22 billion stake in Youku Tudou, China's leading online video platform. Alibaba holds 16.5 percent of shares, while the latter holds 2 percent.

Wasu Media decided in April last year to sell its 20 percent stake for 6.54 billion yuan to Hangzhou Yunxi Investment Partnership Enterprise, which is owned by Jack Ma and other partners.

The e-commerce behemoth acquired a 60 percent stake in Hong Kong-listed ChinaVision Group for $804 million in March last year. The company, now named Alibaba Pictures Group, produces Chinese-language TV shows and movies.

Alibaba Group has its own digital entertainment arm within the company, responsible for businesses such as mobile games and music-streaming service Xiami, according to Reuters.