Alibaba shares are poised to open higher, Monday, after the Chinese-based tech, retail and eCommerce business said it has acquired the rights to show 1,000’s of animated Disney series and hundreds of popular films to users of its media provider services.
Alibaba shares closed at $176.67 on Friday and are currently trading over 1% higher in pre-trade activity.
Alibaba media customers gain Disney content
The agreement between Buena Vista International – an entertainment arm of Disney – and Alibaba’s entertainment arm, is for a multi-year deal whereby Alibaba’s Youko subscribers will gain access to a multitude of popular Disney shows and films.
Youko is wholly-owned by Alibaba.
“The addition of Disney content greatly enriches the library of quality international content on Alibaba’s media and entertainment ecosystem, giving us a leading edge in foreign content distribution in China,” said Youko’s president, Yang Weidong.
“We look forward to further cooperation with global entertainment companies, which will help increase our penetration in the family entertainment segment and strengthen Youku’s position as a leading multi-screen entertainment and media platform in China,” Weidong added.
This latest deal will give Youko’s daily users on some 580 million individual devices an even larger media entertainment library, as Alibaba already has deals with Warner Bros., Paramount, Fox, NBCUniversal and Sony Pictures Television.
Broad ranging investment plans
The Disney deal follows hot on the heels of another agreement Alibaba struck, Sunday.
Alibaba announced it will pay €867 million for a 15% stake in China’s second largest home-improvement business, Beijing Easyhome Furnishing.
The deal underscores Alibaba’s commitment to expanding its physical retail presence in an attempt to further develop a seamless shopping experience for consumers.
“The investment will combine the strengths of the world’s largest e-commerce platform and rich offline sources of Easyhome,” Alibaba said in a statement.
This new retail deal comes just a couple of months after the tech giant purchased a 36.16% stake in China’s largest grocer, Sun Art.