Alibaba invests $1.43bn in Focus Media

According to international publication, Alibaba has acquired a minority stake in Chinese digital advertising company Focus Media for $1.43bn.

Alibaba’s investment will give the e-commerce giant a 6.62% share of the Shanghai based business that owns digital advertising screens in 300 Chinese cities and claims to reach 200 million consumers.

Alibaba will also purchase a 10% stake in an entity that controls 23.34% of Focus Media. New Retail Strategic Opportunities Fund, which is described as a ‘non-consolidated, related party of Alibaba’, will also acquire a 1.37% interest in Focus Media, bringing Alibaba’s total investment to $2.23bn which gives the company a 10.34% stake.

According to Alizila, Alibaba plans to acquire another 5% interest in Focus Media within the next 12 months.