Alibaba Founder, Tencent Take Huayi Brothers Stakes

SHANGHAI: The Chinese movie and TV production powerhouse Huayi Brothers has received investments from Alibaba founder Jack Ma and Tencent as part of a private placement to raise up to $588 million.

Huayi announced in a stock exchange filing that it would issue 145 million shares. The investment firm owned by Jack Ma, the founder of Alibaba, and Tencent will each own more than 5 percent of the company. Huayi is looking to align with both Alibaba and Tencent to expand its business in China.

The funds from the private placement will be used primarily to fund new television dramas. The money will also be used to pay back bank loans, the stock filing indicates.