NEW YORK (TheStreet) -- Shares of Lions Gate Entertainment (LGF) are up 4.52% to $30.03 in pre-market trade after it was reported that the entertainment company and Alibaba Group are teaming up on a subscription streaming service for mainland China that will offer the "Twilight" films, "The Hunger Games: Catching Fire," "Divergent" and "Mad Men," Variety reports.
To be called Lionsgate Entertainment World, the service will be available next month exclusively through Alibaba's latest generation of set-top box. The pricing was not disclosed in the announcement but it's likely to be similar to other SVOD services, Variety said.
The venture moves Alibaba, the Chinese e-commerce and Internet giant, into entertainment content delivery for the first time.
TheStreet Ratings team rates LIONS GATE ENTERTAINMENT CP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIONS GATE ENTERTAINMENT CP (LGF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."