Hangzhou, Zhejiang province-based Wasu Media has signed an agreement with Hangzhou Yunxi Investment Partnership Enterprise, in which the latter will pay RMB6.54 billion ($1.05 billion) to acquire a 20% stake of the company, according to a company announcement of Wasu.
Yunxi Investment will buy 286 million shares of Wasu Media at RMB22.8 apiece in a private share placement.
Yunxi Investment is owned by Alibaba Group‘s founder Jack Ma and co-founder Simon Xie, as well as Shi Yuzhu, founder of Giant Interactive Group Inc.
Wasu Media says it will use the proceeds to develop original content and expand Wasu’s Internet TV terminals.
Alibaba and Wasu Digital TV Media Group also have signed a cooperation agreement for online content and Internet TV.
Shenzhen-listed Wasu Media is a subsidiary of Wasu Digital TV Media Group, focusing on digital TV operation and new media development.
Last month, Alibaba acquired 60% stake of Hong Kong-listed television and film production firm ChinaVision Media for US$804 million.