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Alibaba Group Focuses on Sports with New Business Venture

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What's managed to catch the fancy of two of the top billionaires in China?

Sports.

Alibaba Group HoldingBABA , China's e-Commerce giant led by billionaire Jack Ma, recently launched Alibaba Sports Group along with Sina, a Chinese Internet news site, and Yunfeng Capital to reform the country's sports industry via the Internet.

Meanwhile, Wang Jianlin, the country's richest man, also expressed an interest in sports as his company, Wanda Group, invested in a soccer team and other allied businesses.

Alibaba Sports Group

According to Alibaba Group CEO Daniel Zhang, who will also become the chairman of Alibaba Sports Group, "Alibaba Sports Group aims to transform the China sports industry through the use of Internet-based technologies to bring greater and better products and services to consumers, sports participants and sports fans alike".

Former vice president of Shanghai Media Group, Zhang Dazhong, will be the CEO of Alibaba Sports Group.

The company also stated that this group aims to combine e-Commerce with media, marketing, video, home entertainment, cloud computing and other Internet-enabled technologies. This will build a sports platform catering to the various facets of the professional sports industry, like sports copyrights, sports media, events and ticketing.

Per the statement, majority of the business will be held by the Alibaba Group, though financial details have not been disclosed.

In Conclusion

Though Alibaba Sports Group is a new venture, this is not the company's first interaction with the world of sports. In May, this year, Ma invested in Letv Sports, an online video portal's sports-streaming service.

Further, Alibaba owns a 50% stake in Guangzhou Evergrande, one of China's high-profile football clubs. The company has inked partnerships with football clubs Bayern Munich and Real Madrid, as well as NBA star, Kobe Bryant.

Stocks to Consider

Alibaba currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Autobytel Inc. ABTL , Blue Nile Inc. NILE and PetMed Express PETS . All these stocks have a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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