The companies plan to create a film and television company in China’s Zhejiang province, The South China Morning Post reports. Alibaba Pictures, which is 60% owned by Chinese e-commerce power Alibaba, says the collaboration “will make us more competitive and help raise our game in terms of content innovation, investment, production and distribution.” Hengdian owns the world’s largest studio facility. The partners say that their collaboration will help to train the country’s next generation of entertainment professionals.
Alibaba Pictures has been under a cloud since August: Alibaba paid about $800M for ChinaVision Media in March, but suspended trading in the stock for Alibaba Pictures — the new name for the enterprise — as it investigated possible financial irregularities. The company made the move ahead of its record-breaking $25B IPO last month.