People familiar with the matter revealed that as Alibaba Group continued to advance the architecture restructuring plan, this Chinese technology giant is exploring the possible options for its video entertainment assets.
According to Bloomberg reported on July 4, those who were unwilling to be named because of the fact that the company was not willing to make a strategic evaluation of the video streaming platform Youku and Tudou.One of the options is to inject these assets into Alibaba Films and expand the scope of business.
Alibaba has previously announced a plan for reorganization as the six major business groups, trying to promote growth and build an independent leader in a series of fields such as e -commerce, media, cloud computing and logistics.Alibaba also announced the change of the leadership last month and replaced Zhang Yong, who was in charge of the company's eight years.
Bloomberg reported that in China, Youku and Tencent Holdings, and Baidu's iQiyi three -legged.Their competition was extremely fierce, making these major operators reprimand the content of the purchase and produced the original episodes, follow the successful route of Netflix Inc. to compete for market share and to resist the "offensive" of other emerging platforms.But this approach also triggered a price war that continued to continue, and caused them to fall into losses.Gong Yu, CEO of iQiyi, was interviewed in May that iQiyi had turned to focus on increasing the subscription with more carefully selected and first -class content.
People familiar with the matter said that the relevant review is still in the initial stage, and Alibaba may also explore other options, including the listing of video platforms alone, or may not promote any transactions.Representatives of Alibaba and Ali Pictures did not immediately reply to the request.
According to the Ali Pictures website, the company's business includes content production, Internet announcement and comprehensive development.The company participated in War Wolf 2. Wandering Earth, I am not a high box office movie such as medicine gods.The co -produced green paper won the best film, the best original script and the best supporting actor at the 91st Oscar awards ceremony.
Alibaba Film's stock price has fallen by about 45%in the past year, and its market value has dropped to about 1.5 billion US dollars (about S $ 20.24 billion).
Youku and Tudou who used to be competitors and Tudou merged through a full -stock transaction worth about $ 1 billion in 2012.In 2016, Alibaba bought this company listed in the United States for $ 5.1 billion.Although the number of active users is calculated on a monthly basis, Youku is the third largest video platform in China, but it is increasingly facing a challenge from short video applications (such as the vibrato of byte beating).
Thanks to Youku's investment in content and production capacity, the digital media and entertainment business of Alibaba have narrowed their losses in the three months as of March 31.