China’s ecommerce giant Alibaba Group Holding Limited (NYSE: BABA) plans to invest more than 50 billion yuan ($7.2 billion) under its entertainment unit over the next three years, Reuters reported. Alibaba Digital Media and Entertainment Group, the entertainment affiliate of Alibaba, was launched in October. It consolidated company’s media assets, including video website Youku Tudou, web browser UCWeb, Alibaba Pictures Group, Alibaba Music, Alibaba Sports and the company’s digital business units.
Yu Yongfu, the former chief executive officer of UCWeb, became chairman and CEO of the new group and report directly to Alibaba CEO Daniel Zhang. In an internal email seem by Reuters, the new CEO said the investment will focus on content and “he didn’t come to play.”
The news is confirmed by an Alibaba Group spokeswoman, according to Reuters. However, she declined to provide more details about the investment.
In October, the new unit had already raised 10 billion yuan ($1.48 billion) for new projects. Alibaba shares rose 0.4 percent to $87.90 in early trading in New York.