Lionsgate Entertainment Corp is joining forces with e-commerce giant Alibaba Group to offer film and TV content on a subscription streaming service in China.
Alibaba will provide Lionsgate content exclusively through its set-top box service, the two companies announced today (July 15th).
The move will facilitate Lionsgate’s access to the Chinese market, while Alibaba will boost its expanding digital entertainment business.
In April, Alibaba led a $1.22 billion (£712 million) investment in online video site Youku Tudou Inc. after agreeing in March to pay $805 million for a 60 per cent stake in ChinaVision Media Group Ltd., according to data compiled by Bloomberg.
The group late last week updated its IPO filing to suggest a valuation of $130 billion, up from $117 billion, according to estimates by The Wall Street Journal based on Alibaba’s disclosure of its stock-based compensation, which it set at $56 a share.
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