Alibaba Enters into Sporting Industry by Establishing a Sport Unit
Alibaba Group Holding Ltd will be establishing sports unit, which marks the e-commerce giant’s official entry into the sporting sector. The Hangzhou based company stated that Alibaba Sports Group that is controlled by Alibaba Group is part of a co investment with Sina Corp and Yunfeng Capital a private equity firm that is co founded by Jack Ma, Alibaba’s Chairman. Zhang Dazhong the former vice president of Shanghai Media Group will be assigned to head the new sports unit to act as CEO and Alibaba CEO Zhang Yong as Chairman.
The formed Alibaba Sports is aimed to generate new values and to upgrade the sports industry by using a digital ecosystem thus highlighting the Internet role as one important part of economic growth. This will not be the first time Alibaba have branched out into the sporting sector, as of June Alibaba pent 1.2 billion yuan to purchase a 50 percent stake in Guangzhou Evergrande Football Club which was later renamed Guangzhou Evergrand Taobao.
Alibaba’s efforts came with a growing domestic appetite to create a better sport content. This is also a move that is part of the conglomerate’s broad efforts in boosting and to diversify revenue sources since the company is facing a slow growth. So far Alibaba already have investments in the entertainment and healthcare industries