+1-888-308-5802     
News Contact Us

Alibaba gears up for expansion into the advertising & media industry

Author : Pankaj Singh | Published Date : 2018-07-23 

Alibaba, the Chinese e-commerce giant will apparently pay around USD 2.23 billion for a 10% stake in the digital advertising company Focus Media. Incidentally, Focus media runs screens in elevators & subways across China, claim authentic sources.

As per reports, Alibaba is considering investing in WPP China, an ad agency, in a move that is expected to boost its e-commerce operations as well as help position itself strongly in the media & advertising sector.

The deal with Focus Media, a Shenzhen stock market listed firm, consists of a USD 1.43 billion payout for a stake of 6.6% approx. Alibaba is also expected to pay USD 505 million for a 10% stake of an entity that has control of 23% stake in Focus Media, commanded by Jason Nanchun Jiang, founder & Chairman, Focus Media. As per sources, New Retail Strategic Opportunities Fund LP, a related but non-consolidated party of Alibaba, will also buy 1.4% stake in Focus Media.

Alibaba claims that it plans to acquire 5% interest in Focus in the next 12 months. As per an official statement, this deal would bring about myriad synergies with Alibaba’s largest digital marketing platform, Alimama.

Focus plans to reach 500 Chinese cities & 500 million consumers through 5 million terminals, in the near future. As of now, Focus is present in 300 cities of China and reaches around 200 million consumers.

Alibaba’s current entertainment and media operations includes ownership of Youku, video streaming company; Alibaba Pictures, a film distribution, marketing and investment firm; and the South China Morning Post, a Hong Kong based English language newspaper.

According to recent reports, Tencent, Alibaba’s technology rival and China Media Capital (CMC), a tech investment group are in discussion to purchase stakes in WPP China, a local unit of the advertising magnate WPP. Incidentally, WPP is an investor in many of CMC’s firms, including Flagship Entertainment, BaseFX, and TVB.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

ByteDance could lose $6 billion following recent TikTok ban in India

Published Date: 2020-07-03         Author: Pankaj Singh

The latest decision taken by the Government of India to ban 59 Chinese smartphone apps is trending worldwide, especially across China. As per a report by China’s Global Times, ByteDance, the parent firm of Helo and TikTok, is likely to incur a loss of about $6 billion after this imposed ban by... Read More

Oyo suspends MGB contracts for property owners due to reduced revenues

Published Date: 2020-07-01         Author: Pankaj Singh

The adverse impact of COVID-19 pandemic is becoming more and more evident across the world. It is being speculated that  nothing of this magnitude has been observed for more than 100 years since the 1918 Spanish Flu pandemic. Till now, over ten million people have been infected in over 200 nati... Read More

Universal Studios postpones the opening of Nintendo-themed area

Published Date: 2020-06-30         Author: Pankaj Singh

The ongoing COVID-19 pandemic has claimed the lives of over half a million people and affected more than ten millions around the world. As the current situation is worsening, many world events as well as the opening of theme parks have been canceled or postponed in order to reduce the spread of the ... Read More

© 2020 Fractovia. All Rights Reserved