Hong Kong-listed television and film production firm ChinaVision Media Group says that Hangzhou-based Chinese e-commerce giant Alibaba Group has agreed to buy a 60% stake in the company for about HK$6.24 billion ($804 million), according to a company announcement.
Alibaba will, through its subsidiary Alibaba Investment Ltd, subscribe 12.49 billion news shares of ChinaVision Media at HK$0.50 apiece, a discount of about 21.88% to its closing share price of HK$0.64 on Feb 25.
In 2011, Tencent acquired a 8% stake of ChinaVision Media for HK$247.8 million, which will be diluted to 3.2% after the deal.
ChinaVision Media says it will use the proceeds for the group’s general working capital and investments when opportunities arise.
The company will also establish a strategic committee with Alibaba to explore future opportunities in online entertainment and media-related areas.
ChinaVision Media is an integrated cultural corporation with focuses on TV and film production, print media and mobile new media.
Alibaba has made a number of large acquisitions lately. Last month, the company made a US$1.1 billion offer to fully control NASDAQ-listed digital mapping and navigation firm AutoNavi Holdings, after it bought a 28% stake in the company for US$294 million in May 2013.
It also acquired a 54% stake in Chinese pharmaceutical data firm CITIC 21CN for around HK$1.3 billion ($170 million) with Yunfeng Capital in January.