Alibaba Set to Invest $7.2 Billion on Entertainment Content: Report
The unit's new CEO Yu Yongfu said he "didn't come to play."
Alibaba's digital media and entertainment group plans to invest more than 50 billion yuan ($7.2 billion) over the next three years, according to an internal memo seen by Reuters and confirmed by a company spokesperson.
The unit's new CEO Yu Yongfu said in the message that the company planned to invest heavily in content, adding that he "didn't come to play."
The Chinese e-commerce giant announced it was consolidating its key entertainment holdings in October. The unit, officially called Alibaba Digital Media & Entertainment Group, includes streaming service Alibaba Music, video site Youku Tudou, Alibaba Gaming, mobile browser UCWeb, Alibaba Literature and Alibaba Pictures, which is dealing with a "dramatic slowdown" in box office numbers.
It's unclear whether the $7.2 billion infusion includes a previously announced 10 billion yuan ($1.5 billion) investment in the entertainment fund. A request for comment on the initiative was not immediately returned.
Alibaba was recently called out in the "notorious markets" report from the Office of the U.S. Trade Representative. In it, the USTR said Alibaba's answer to eBay, Taobao.com, deals in a high level of counterfeit and pirated goods. In response, Alibaba has said it removed millions of product listings and enhanced its enforcement efforts.