Alibaba Pictures announces acquisition of Damai and expects to complete transaction in the fourth quarter of this year

Alibaba Pictures, a subsidiary of Alibaba Entertainment Group, announced that it has signed a share purchase agreement with Alibaba Investment Co., Ltd. (hereinafter referred to as "Ali Investment"), a wholly-owned subsidiary of Alibaba Group, under which Alibaba Pictures will conditionally acquire all the shares of Pony Media Holdings Inc., which operates the "Damai" brand.

Li Jie, President of Alibaba Pictures, said: "We believe this transaction will open a new chapter for the new Alibaba Pictures. Prior to this transaction, we had established a deep cooperative relationship with Damai through an exclusive entrusted operation service agreement and accumulated more than 20 million Taomai VIP members. After the completion of this transaction, we will continue to integrate industry resources, expand our influence in the industry chain, drive development with technological innovation, and ultimately create value for our customers and shareholders."

The total consideration for this transaction is US$167 million (equivalent to approximately HK$1.307 billion), and the company will issue approximately 2.513 billion common shares to Ali Investment at HK$0.52 per share. Immediately after the completion of this share issuance, Alibaba Group's shareholding in Alibaba Pictures will increase to approximately 54.26%. Alibaba Pictures said that the transaction is expected to be completed in the fourth quarter of 2023.