China's e-commerce powerhouse Alibaba has inked a deal to purchase shares of Wanda Film under China Wanda Group.
According to the strategic deal on Monday, Alibaba and Cultural Investment Holdings Co. Ltd. agreed to buy 12.77 percent of Wanda Film's shares at the price of 51.96 yuan (8.27 U.S. dollars) per share.
Alibaba became Wanda Film's second biggest shareholder with an investment of 4.68 billion yuan, while Cultural Investment Holdings Co. Ltd. came in third place with 3.12 billion yuan.
According to the deal, Alibaba and Wanda Film will cooperate with each other strategically based on their rich resources in cultural and entertainment businesses, and on their advantages in film consumption.
Alibaba has increased investment in cultural and entertainment businesses in recent years. In 2016, the company founded the Alibaba Digital Media and Entertainment Group, which focuses on films, music, literature and games.