Alibaba Gets Into K-Pop

Alibaba Group Holding Ltd (NYSE: BABA) acquired a minority stake in SM Entertainment, a South Korea-based record label, talent agency and entertainment provider.

SM Entertainment is one of the biggest record labels in the "K-pop," or Korean pop industry.

According to an English-translation of SM Entertainment's press release, Alibaba acquired a 4 percent stake in the company for $29.7 million. The company also commented that the partnership will bring South Korean music and related merchandising to China through Alibaba Music Group.

"Through this partnership, we'll synergize in various fields, including China's digital music industry," SM Entertainment said in a statement. "We'll continue to localize and expand our business in China."

Shares of Alibaba were trading lower by 1.85 percent at $60.64 late Thursday morning.