NEW YORK (TheStreet) --Alibaba (BABA) announced on October 9 that it had purchased a stake in Steven Spielberg's Amblin Partners, as the Chinese box office is projected to surpass that of North America's next year. Alibaba acquired the stake through its Alibaba Pictures division.
"Today the company is talking about why they're teaming up to co-produce and co-finance films for global and Chinese audiences," CNBC's Julia Boorstin reported during Tuesday's "Power Lunch."
"We now have a partner in China that has amazing reach. Has amazing knowledge of the Chinese consumer, and can really guide us there. They can be our marketing distribution partner, merchandising partner; we plan to explore Chinese co-productions together," Amblin Partners co-CEO Jeff Small said.
Amblin's goal is to harness the digital marketing and distribution power of Alibaba. Accessing its platform of 434 monthly active users to promote merchandise, and ticketing, Boorstin noted.
"We believe in building a platform where we can build partnerships and allow people to create content, and reach audiences on our platform," Alibaba Pictures president Zhang Wei said.
Shares of Alibaba were lower in late afternoon trading on Tuesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALIBABA GROUP HLDG as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.