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Alibaba Media Unit to invest 50b yuan over 3 yrs
[NEW YORK] Alibaba Digital Media and Entertainment Group plans to invest more than 50 billion yuan (S$10.4 billion) over the next three years, the chief executive officer of the unit of Alibaba Group Holding Ltd said.
Yu Yongfu, the division's new CEO, announced his investment plan in an internal e-mail published within a Sina.com report, which a company spokesman confirmed was accurate. Reuters earlier reported on the plans.
China's e-commerce giant Alibaba spun out the group in October, consolidating the company's media empire, which includes video website Youku Tudou, web browser UCWeb, Alibaba Pictures Group Ltd and the company's gaming, literature, music and digital business units. At the time, Alibaba initiated a fund of more than 10 billion yuan for new projects. It wasn't clear whether the 50 billion yuan figure includes the previously announced fund.
Alibaba has been doubling down in entertainment, spending billions of dollars on media assets to generate new growth in the face of China's slowing domestic economy. The company is establishing itself in Hollywood, backing movies like the latest "Mission Impossible" film. Earlier this month, Alibaba Pictures Group bought a stake in Amblin Partners, the new production outfit backed by Steven Spielberg to work together on production, marketing and distribution globally and in China.