Alibaba Raises Funds to Develop its Online Movie Ticketing Platform
The Chinese online retailer has been well-funded by a number of organizations to battle with Tencent-backed online ticket booking service
The registered movies division of Alibaba Group Holding Limited, has increased the value of its O20 promotions and distribution subsidiary, which runs an online ticketing platform following a new fundraising round, it stated in a HKSE filing disclosed on 14th May 2016. Alibaba Pictures Group stated the valuation of its O2O platform was currently worth $2.1 billion(13.7 billion yuan) based on new funds received from an investors group led by Sina.com, Ant Financial Services Group as well as CDH Investments. A number of other Chinese organizations also participated in the round. One of those is Bona Film Group
The statement stated by investing, investors raised the valuation of the platform by $260 million, who will own nearly 12.4% of its equity. The Chinese E-commerce company’s film division is pushing its E-ticketing platform to battle with Tencent-backed organization Weiying Technology Co Limited, which is the film ticket booking application operator Weipao.
In recent times, Weipao completed a $694 million series C+round in the last month. Taobo Movie presently offers online film ticket booking and sales service in more than 5000 cinemas in the Chinese region, contributing to around 95% of the box office revenue in China. Following its integration into Alibaba Pictures in late last year, the online film ticketing division has expanded into a distribution and internet-enabled platform for entertainment sector.
The online retailer’s movie subsidiary stated the money earned from this recent transaction will be spent to not only sustain the operations of its online film ticketing platform as well as further enhance its position in a rapidly developing and competitive business niche.
CEO of Alibaba Pictures Zhang Qiang has stated “The completion of this Series A Financing demonstrates that the business strategy, market prospects and operational capability of Taobao Movie has been well recognized by the industry. With the support of more abundant resources and capital, we will continue to create greater value for our partners, investors and the market,”
While the trading of the shares of the Hangzhou based company is done in New York, the movie unit is listed on Singapore as well as Hong Kong Stock Exchanges and has its own share quotes. As per reports by Finance Asia, the film division has raised funds at a time when it is investing a sum of $150 million in the Dadi Cinema issued convertible bonds. If converted fully, the movie arm of the web retailer would grab a 4.7% equity share in Dada Cinema, taking the valuation of the second biggest cinema management and investment company at $3.07 billion(Rmb 20 billion), stated Dadi Cinema CEO Yu Xin.
Xin also stated it is the only time the Cinema had brought any strategic investor. In October 2015, Jack Ma’s organization spends $4.7 billion to acquire the Chinese video sharing service Youku Tudou. The online retailer used to hold a 18.3% in the video hosting service provider.
