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Alibaba Group may inject entertainment assets into pictures unit
[MELBOURNE] Alibaba Group Holding Ltd may inject some entertainment assets into its Hong Kong-listed movies unit, which said last year its accounting may have been flawed.
The assets include an online movie ticketing business and a financing platform used to help produce content, Alibaba Pictures Group Ltd said in a filing on Wednesday. The proposal is non-binding and there is no certainty a deal will go ahead, it said.
Alibaba Group bought an US$800 million stake in the Chinese film company last year before the e-commerce company's record initial public offering as part of Chairman Jack Ma's quest to build a portfolio of movies and TV programming.
After the deal, Alibaba Pictures said management uncovered possible accounting flaws and delayed the release of earnings. That triggered a slump in its shares. Alibaba Pictures has blamed misstated tax payments and other accounting on lax internal controls by the company's previous management team.