Last week Alibaba announced a plan to enter the international game distribution industry with an investment of 1 billion yuan ($150 million).
The Chinese group is teaming up with Mail.Ru Group, TFJoy, Efun and ONEMT to establish the “Global Strategic Alliance of Game Distribution.”
An LSE-listed Russian Internet group, Mail.Ru Group is a major player on the Russian and global online games scene.
The newly created alliance will aim to enhance mobile game distribution between China and Russia, Europe, Japan, the Middle East and the USA, and to optimize local users’ gaming experience.
From IP circulation to traffic integration
“To maximize the value of intellectual property [in the field of gaming], [we] will integrate the resources from UCWeb, Youku, Alibaba Pictures, Alibaba Literature, building a circulation chain for the IP derivatives. UCWeb with its massive traffic entry globally will play a significant role in the distribution of Alibaba Games,” stated Xiaopeng HE, President of Alibaba Mobile Business Group.
Alibaba Games also upgrades traffic distribution by integrating the traffic in both iOS and Android platforms. The company uses big data technology for accurate distribution and recommendations to each user.
This investment is Alibaba’s latest move to diversify beyond its original offering as an e-commerce firm. The Hangzhou-based company is now doing everything from making movies to dabbling in mobile payments, notes CNBC.
Previously UCWeb, an entity of Alibaba Digital Media & Entertainment Group, announced a partnership with Mail.Ru Group in the field of mobile games.
Reportedly, this partnership aims to integrate UCWeb’s solutions in the mobile games and products of Odnoklassniki (OK), a major Russian social network owned by Mail.Ru Group.
UCWeb also works with Playtox and Overmobile, two Russian game developers, notes Russian venture blog VC.RU.