Alibaba (BABA) Said Planning Asset Injection into Struggling Movie Unit

Alibaba Group Holidings (NYSE: BABA) is planning to consolidate its movie branch as the unit remains an unprofitable business for the e-commerce giant.

The WSJ said on Wednesday that Alibaba is planning to roll its online movie ticketing business and movie production crowdfunding platform into its Alibaba Pictures Group unit.

Hong Kong-listed Alibaba Pictures shares rose 36.7 percent upon resumption, after being halted since March 24th.

While specific names of the assets being injected into Alibaba Pictures weren't mentioned, market watchers pegged the units as Taobao movie and Yule Bao, the company's movie-backing website.

The proposed tansaction will create a segment in the Chinese movie industry that was previously lacking.

Shares of Alibaba are up 3.7 percent.

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