Alibaba, Tencent join hands for Bona Film buyout

Internet giants Alibaba Group Holding Ltd and Tencent Holdings Ltd are joining the group bidding to take Chinese film studio and distributor Bona Film Group Ltd private after it delists from the Nasdaq stock exchange.

Alibaba Pictures Group Ltd, the film affiliate of Alibaba Group, said on Tuesday that it would join other entities to buy out Bona, which received a privatization proposal in June. Bona, backed by billionaire Guo Guangchang, is a leading producer and distributor of films in China.

The proposed deal values Bona at about $1 billion. The Hong Kong-listed Alibaba Pictures said it would spend about $86 million for a 10 percent stake in Bona, while Tencent has declined requests to share terms. The deal is expected to close during the second quarter of next year.