Enlight Media's booth at an international culture industry expo in Beijing. Alibaba announced on?March 4, 2015?that it will take an 8.8 percent stake in Enlight Media, becoming the company's second-largest shareholder. [DA WEI/FOR CHINA DAILY]

Internet giant agrees on $383m deal with Enlight

Alibaba Group Holding Ltd, the Chinese Internet giant, has agreed to invest 2.4 billion yuan ($383 million) in TV content and film producer Enlight Media, as the latest part of its strategy to expand into the culture and entertainment sector.

Alibaba will take an 8.8 percent stake in Enlight, becoming the company's second-largest shareholder, according to a statement issued by the media company on Wednesday.

"Let's not forget that Alibaba is not just an e-commerce company and that the entertainment industry is one of the fastest-growing industries in the country right now," said Will Tao, a technology analyst at consulting firm iResearch.

"Additionally, the culture production industry is receiving great support from the central government to expand further."

Enlight is one of the country's largest privately owned video content providers and operators. It provides a wide range of entertainment content ranging from news broadcasts to variety and live shows. In 2012, the company produced China's box-office hit Lost in Thailand.

"Social networking is one of Alibaba's weaknesses, therefore it has an interest in taking a stake in a company like Enlight. Alibaba also has plenty of cash in hand right now to spend on acquisitions," said Tao.

Alibaba has made a string of acquisitions related to the entertainment sector. The company partially owns China's leading online video platform Youku Tudou Inc. It has also ventured into online calling services and games.

In June last year, the online giant announced a hefty $800 million investment to gain control of another media content producer, Hong Kong's China Vision Media Group Ltd, which enabled it to further tap into digital content production.

That deal was designed to help Alibaba access China Vision's television programs, films and other digital content which are experiencing surging demand from China's rapidly growing number of mobile Internet users. Alibaba is not the only Chinese conglomerate battling to secure content companies as demand for culture-related services surges among Chinese consumers.

Dalian Wanda Group Co Ltd, China's largest commercial property company and the world's largest cinema chain operator, is also investing beyond its traditional strengths. "Wanda Group is targeting revenue of 100 billion yuan by 2020 from its culture business," said its Chairman Wang Jianlin in February at a news conference in Beijing.

During the Lunar New Year holidays, box office revenue from Chinese cinemas overtook the United States in February for the first time, making China the world's biggest box office market for the month, according to research firm Entgroup.

Meng Jing contributed to this story.