No more than two months after Alibaba bought the film company, Alibaba Pictures, it asked for the stock to be suspended after finding suspicious accounting in its books.
The issue comes as Alibaba Group gets ready to launch what may be the biggest IPO listing in American history. The Alibaba Group’s total acquisitions have now reached a value of more than $5 billion. The accounting issues at Alibaba Pictures have increased concerns about the group’s expansion strategy.
Alibaba Group’s IPO is set to list in New York in October. Alibaba Pictures’ stock trading remains suspended.
CCTV America’s Cathy Yang reports.
Accounting fraud in Alibaba Pictures worries investorsNo more than two months after Alibaba bought the film company, it asked for the stock to be suspended.
— CCTV America (@CCTV_America) September 17, 2014