The WSJ reports,"Alibaba Group Holding Ltd. has tapped a top executive with state-controlled China Film Group Corp. to run its film-production studio, according to people familiar with the matter. It is the latest sign that the e-commerce giant intends to become a powerful force in China's fast-growing entertainment industry.
Zhang Qiang, a vice president for China Film Group, has resigned to become head of Alibaba Pictures Group, said people familiar with the hiring.
Alibaba paid more than $800 million in June for a majority stake in Chinese film- and television-production studio ChinaVision Media Group Ltd. , and then renamed it Alibaba Pictures Group.
Alibaba, which is preparing for a U.S. listing that could be one of the largest in history, has been beefing up its presence in China's entertainment industry. The company hopes to take stakes in Chinese film studios and commission original material, as well as acquire the rights to TV shows or films it can run online, according to people familiar with the matter.
China Film Group distributes most films in China, a tightly closed market that foreign companies want to break into because of its booming box office. Mr. Zhang has been the public face of its China Film Co. subsidiary, which has been striking deals with Hollywood studios such as Legendary Pictures LLC and Paramount Pictures to produce big-budget movies that it hopes will appeal to Chinese and overseas audiences".
