Alibaba Pictures Group is to acquire a 30% stake in Chinese film investment company Hehe Pictures to become its second largest shareholder, the firm announced today.
The investment value was not disclosed.
"Hehe Picture has made innovative progress in movie investment and distribution," said Zhang Qiang, chief executive of Alibaba Pictures. "We hope to explore partnerships in movie production and distribution to help form a healthy film financial ecosystem in China."
The investment follows an aggressive year in which Plibaba Pictures agreed to buy a minority interest in American movie director Steven Spielberg's Amblin Partners and a stake in China's second largest cinema operator Dadi Cinema.
Alibaba Pictures also unveiled plans earlier this year to set up a RMB2 billion (US$300 million) investment fund to invest across the movie and television industry value chain.
Alibaba and Hehe Pictures have partnered in a couple of occasions before.
In May, Hehe Pictures participated in a RMB1.7 billion (US$260 million) series A funding round in Alibaba Picture's online ticket booking unit Taobao Movie. The two also worked together on producing movie, The Ferryman.
Founded in 2013, Hehe Pictures counts Chinese actor Chen Kun, singer Yand Kun and director Cao Baoping as owners.
It has invested in movies including The Mermaid, Chongqing Hot Pot, Skiptrace and Cock and Bull, and have grossed RMB4.8 billion at the box office until October, according to Chinese media reports.
It is planning to make 20 more movies.