Alibaba to Rival Bloomberg; Film Division Raising $1.6 Billion

Alibaba Group Holding LimitedAlibaba Group Holding Limited (NYSE/BABA) is expanding its business.

Investing $194 Million into China Business News

On Thursday, June 4, Alibaba Group Holding Limited announced that it had entered a strategic agreement with Shanghai Media Group in order to expand into the financial information services industry. (Source: Alibaba Group, June 4, 2015.)

Shanghai Media Group owns a leading Chinese financial media company, China Business News. Under the agreement, Alibaba would invest 1.2 billion yuan ($193.6 million) into China Business News.

The agreement would give China Business News access to Alibaba’s big data and cloud computing capabilities. Together, the companies would develop a comprehensive financial data and information platform. This would give small and medium Chinese enterprises access to financial data.

Jack Ma, founder and executive chairman of Alibaba said, “The era of data technology is here and it will surpass the information technology era. The DT era is about transparency, sharing of information and enabling others. Alibaba is excited about the possibilities of the DT era and how it can bring value to society.”

Alibaba Pictures to Raise $1.6 Billion

Alibaba Pictures Group Limited (HKSE/1060.HK), the film division of Alibaba Group Holding Limited, announced its plan to raise HK$12.2 billion ($1.6 billion) from a share placement.

The proceeds from selling 4.2 billion new shares could help finance the company’s potential acquisitions. The potential issue of shares would increase outstanding shares by 20%, thus diluting existing shares.

The share placement plan looks to take advantage of the surging stock price of Alibaba Pictures. Its stock price has gone up by a staggering 145% since the beginning of this year.

Alibaba Pictures was formerly ChinaVision Media, which was bought by Jack Ma’s Alibaba in 2014. Jack Ma’s company has invested in a number of media and entertainment companies. It has stakes in Youku Tudou, Huayi Brothers, and Wasu Media, to name a few.