Alibaba Group Holding Ltd has announced that it agrees to acquire a minority stake in Chinaâ€™s Focus Media Information Technology Co Ltd to tap into the digital marketing sector.
Alibaba will acquire about 6.62% in Focus Media for 9.63 billion yuan and possibly another 5.0% stake in the next 12 months, according to the company statement.
Upon completion of the deal, Alibaba will become Focus Mediaâ€™s strategic investor.
The e-commerce firm will also invest US$511.1 million in an entity controlled by Focus Mediaâ€™s chairman Jason Jiang, by subscribing to newly issued shares.
Focus media, which was founded in 2003, has its main business in Chinaâ€™s interactive digital media and online advertising sectors.