Alibaba Group Holding Ltd (NYSE:BABA) Announced the formation of a new cultural and entertainment group and raise more than 10 billion yuan ($1.48 billion) for new projects. The new entertainment group, which is called the Alibaba Digital Media and Entertainment Group, will include video website Youku Tudou, web browser UCWeb, Alibaba Pictures Group, Alibaba Music, Alibaba Sports and the company’s digital business units.
“The cultural and entertainment ecosystem would integrate Alibaba’s e-commerce, finance, logistics and cloud ecosystems to make the whole Alibaba ecosystem more rounded, offering a better rounded experience and service for Alibaba’s users and clients,” the letter said according to the reports.
The company also raised 10 billion yuan ($1.48 billion) for the new digital media group. It shows Alibaba’s ambition in entertainment industry. Earlier this month, Alibaba Pictures Group partnered with Amblin Partners, the new production outfit backed by Steven Spielberg, to produce and distribute movies globally and in China.
Yu Yongfu, the former chief executive officer of UCWeb, will become chairman and CEO of the new group and report directly to Alibaba CEO Daniel Zhang. Victor Koo will step down as the chairman and CEO of Youku Tudou to run capital raising and management for the new fund.
Alibaba schedules to report its third quarter earnings on Wednesday. Analysts expected the company to report profit of $0.47 a share.