Alibaba form $ 1.5bn digital media group

Chinese technology company Alibaba has announced it is launching a new digital media group, erectile with $1.5bn to spend on new projects. 

The deal would mean that Alibaba consolidates all of its media activities under the new Alibaba Digital Media and Entertainment Group, including music, games, video service Youku Tudou, movies arm Alibaba Pictures Group and other digital properties in one unit.

In February, Alibaba bought a 4% stake in South Korean music company SM Entertainment, and unveiled its Alibaba Planet music social networking platform in April.

Yu Yongfu, former chief executive of UCWeb, will become the chairman and chief executive of the new group, reporting directly to Alibaba chief executive Daniel Zhang. 

Youku Tudou chairman and chief executive Victor Koo will chair the Alibaba Digital Media and Entertainment Strategy and Investment Committee, which will manage the planned fund for the new digital media group.

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