A FIRM controlled by Alibaba founder Jack Ma and social media firm Tencent are set to raise their stakes in Huayi Brothers Media Corp.

    Huayi Brothers, which produces and distributes music, movies and television programs, said yesterday in a filing to the Shenzhen Stock Exchange that it would issue 145 million shares in a private placement to raise a total of up to 3.6 billion yuan (US$588 million). It plans to use the cash for new movie and other projects, as well as to repay some bank loans.

    The investment firm controlled by Ma will subscribe to 61.76 million shares, while Tencent, China’s largest social network and gaming firm, will purchase 51.55 million shares. Other investors also include Ping An Asset Management and CITIC Securities.

    Ma’s investment firm and Tencent will own an 8.08 percent stake each in Huayi, up from 4.03 percent and 4.86 percent respectively. They will be the second-biggest shareholders in Huayi, after senior Huayi executives.

    “The mobile Internet industry is developing rapidly, while the tie-up between the media and Internet industries is also increasing,” Beijing-based Huayi said.

    “Our alliance with Alibaba and Tencent will strengthen our development in these areas.”

    Huayi also signed strategic alliances with both Ma and Tencent, hoping to use links to some of China’s biggest Internet firms to develop its presence in the e-commerce, online entertainment and movie business. (SD-Agencies)