China Literature goes to the movies; investors see a flop

Tencent’s e-book unit buys Chinese film studio for $2.3 billion. It's betting on turning its huge stockpile of stories into big-screen blockbusters, but the deal is a horror show for its share price.

China Literature took a big step towards its ambition of becoming a full-fledged media and entertainment company on Tuesday as it agreed to acquire privately-held production house New Classic Media for Rmb15.5 billion ($2.3 billion).

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