Alibaba Pictures Group Limited, formerly known as ChinaVision Media Group Limited, announced that they have fully acquired Guangdong Yueke Software Engineering, an online solutions provide for the movie industry, for CNY830 million.
Yueke Software's 100% stake was previously on sale at Southern United Assets and Equity Exchange and the listed price was CNY180 million. Alibaba finally won the bidding for CNY830 million in cash.
Yueke Software's core businesses include movie ticket sales management, chain management, an e-ticket platform, mobile ticketing applications, third-party e-commerce platform access, and automatic display systems. Yueke Software has provided services to over 30 third-party cinema e-commerce operators in China.
With the popularization of online sales of tickets, the online seat selection market also saw rapid growth. Between 2010 and 2015, China's online seat selection market realized a compound growth rate of 198%. Industry watchers believed that China's large chain cinemas will all open the online seat selection functions in the future.
This is reportedly the second large-size capital transaction of Alibaba Pictures recently. Prior to this, the company received a capital injection suggestion from its controlling shareholder Alibaba Group. The report revealed that Alibaba Group intended to inject Taobao's film ticket business and related value-added service platform into Alibaba Pictures. The two parties are currently pushing forward relevant details.