Alibaba, one of the largest Chinese e-commerce groups, has just announced that it will set up a new company that will focus on professional sports.
The new announcement of the Chinese company comes as it seeks new business beyond the e-commerce market.
According to Sky News, the new Alibaba Sports Group, will use its parent's e-commerce ecosystem to dabble in businesses such as sports media, events and ticketing, according to the company's offical statement released on Wdnesday.
Aiming to transform the China sports industry, it also intends to "bring greater and better products and services to consumers, sports participants and sports fans alike," said Alibaba CEO Daniel Zhang, who will also be chairman of the new sports company.
As reported by Tech in Asia, Alibaba teamed up with Sina and Jack Ma's Yunfeng Capital for this new business move. However, the company's specific plans and products have yet to be announced.
But the newly created Alibaba Sports Group aims to get a hold on sports copywriting, media and events. Potentially, Alibaba may also try its hand in bringing sporting events to China and stream videos as well.
Reports are saying that this is not the first time Alibaba has dipped its hands on the sports industry. In earlier ventures, it was reported by IOL, that the Chinese e-commerce giant paid 1.2 billion yuan or $188 million for a stake in Guangzhou Evergrande, a Chinese football club.
Back in May, Alibaba founder Jack Ma also invested in Letv Sports, an online video portal sports-streaming service. The company also has partnerships with other football clubs such as Bayern Munich and Real Madrid and even with NBA superstar Kobe Bryant.
It seems that the move aims to compete as Alibaba is not the only company who attempts to expand in sports. Just two weeks ago, Dalian Wanda Group announced that it would buy the organiser of the Ironman Extreme Endurance Contest for $650 million.
With this move by Chinese company giants, the real winners here are the Chinese sports fans that will benefit with this expansion.
