Alibaba Pictures makes $150m cinema move

As it prepares to release a series of self-produced films, Alibaba Pictures has made its first move into China’s growing cinema circuits business by investing Rmb1 billion $150 million in convertible bonds issued by Guangdong Dadi Cinema Construction.

If fully converted, the film and entertainment arm of Chinese internet giants Alibaba would hold a 4.76% equity stake in Dadi Cinema, valuing the country’s second-largest cinema investment and management company at Rmb20 billion $3.07 billion, said Yu Xin, chief executive officer of Dadi Cinema. 

“We have already been working with them, particularly on online ticketing, since last year. The investment this time isn’t for...