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After acquiring Damai, Alibaba Group couldn’t just get enough as it plans to set up a logistic hub in Malaysia. The Chinese e-commerce giant has been exploring opportunities in and out of China as part of its strategic scheme after igniting investors’ interest in its previous financial data. The stock was slightly unchanged from the current range; however, the recent investments can still target the Company’s growth areas as it expands to meet long-term growth.

Alibaba and Damai

Amid the falling stock on Tuesday, Alibaba announced the acquisition of Chinese online ticketing platform Damai to strengthen its media and entertainment business. In the last quarter, the Company’s revenue from digital media and entertainment increased 273% year-over-year to RMB 4,063 million ($585 million.) This particular business area contributed to the attainment of $4.9 billion in free cash flow on a non-GAAP basis.

In the statement released by Alibaba, it explained “Damai.cn will be a powerful platform to distribute our media content as well as expand our user reach and engagement. There will be extensive collaboration opportunities with our other entertainment assets, including Alibaba Music, Alibaba Pictures and Youku.” Clearly, the Company invests in its growth areas and enhances its very own services.

Prior to this, Alibaba mentioned in its earnings report released in January its goal to keep its competitive position in digital entertainment in China through a combination of licensed premium content as well as self-produced and joint-produced programming, achieving synergies across the entertainment platforms on both mobile and living room screens.

The details of the acquisition, including the total sum, remained undisclosed. Alibaba believed the deal can lead to even greater collaborations after its initial investment in Damai three years ago. The e-commerce Company will lead the online ticketing services for concerts, sporting events, live theater, movies and other event in over 300 cities when the deal takes effect.

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However, the investors seemed unpleased with the recent activity of Alibaba. After climbing at 107.87 levels on Monday, it was dragged down to 104.96 during the overnight session on Tuesday. The stock mirrored its range last week, but still it has been on its bullish streak since January.

Alibaba in Malaysia

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Meanwhile, the Company keeps on solidifying its core with the newest logistic hub to be built in Malaysia which will serve as a centralized customs clearance, warehousing and fulfillment facility in Malaysia and the region. The hub is expected to deliver a faster clearance for imports and exports since it would be situated in the digital free trade zone set to be developed close to the Kuala Lumpur International Airport.

In the last quarter, Alibaba pledged to continue to invest in the commerce infrastructure in emerging markets, such as Southeast Asia, to expand merchant and consumer opportunities and capture the long-term growth potential of cross-border and local trade. It seems the words are now put into action alongside with the recent partnerships that the Company sealed in February.

Last month, Alibaba announced a new retail tactical tie-up with China's leading retailer Bailian Group. The partnership is expected to leverage the power of big data to achieve integration between offline stores, merchandise, logistics and payment tools with the ultimate aim of elevating efficiency and overall consumer experience.

After the opening bell, Alibaba stock remained flat at $105.09, declining 0.29 percent to $107.79 in the pre-market session. Currently, it has a market capitalization of $259.99 billion and price earnings ratio of 48.5.

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