Alibaba has agreed to pay $804 million for a majority stake in ChinaVision Media Group, a Hong Kong firm specializing in TV and film production. This could very possibly mean that Alibaba may soon be taking steps to produce content in collaboration with ChinaVision. After all, throughout last year, Chinese tech firms were already taking steps to make their mark within the online video space, seeking to capitalize on the opportunities as Chinese consumers effectively started taking their TVs to the subway.
China’s largest e-commerce company Alibaba Group Holding has agreed to buy a controlling stake in ChinaVision Media Group Ltd for $804 million, giving it access to TV and movie content as competition in the world’s biggest Internet market becomes increasingly cutthroat. The pact, which sent ChinaVision’s stock surging, comes amid a flurry of deals as Alibaba, social media giant Tencent Holdings Ltd and search engine Baidu Inc seek to expand into each other’s turf. This week Tencent said it was taking a stake in China’s No. 2 online retailer JD.com, with the new partnership gunning for Alibaba’s Achilles heel – its weakness in mobile.