Wanda Group Co. said Alibaba Group Holding Ltd. has agreed to invest in its film unit, becoming the second-largest shareholder, as the cinema chain operator sells stakes for about 7.8 billion yuan ($1.2 billion).
Alibaba is investing 4.68 billion yuan for a 7.66 percent stake in Wanda Film Holding Co., Wanda Film said Monday in a regulatory filing. Beijing Cultural Investment Holdings, controlled by the Beijing government, will pay 3.12 billion yuan for a 5.11 percent stake.
Investing in Wanda could help Alibaba founder Jack Ma play a larger role in what is forecast to become the world’s largest box office by 2020. Billionaire Ma is competing with Tencent Holdings Ltd.’s Pony Ma Huateng, as both splurge on investment in movie and TV production.
Trading in Wanda Film, which operates China’s biggest chain of movie theaters as well as Australia’s Hoyts Group, has been suspended since July, pending an asset reorganization.
